Money and trade considered: with a proposal for supplying the nation with money. First published at Edinburgh 1705

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The

Robert E. Gross
Collection

A Memorial to the Founder
of the

Business Administration Library
Los Angeles

MONEY

AND

TRADE

con sidered:

WITH A PROPOSAL FOR SUPPLYING
THE NATION WITH MONEY.

FIRST PUBLISHED AT EDINBURGH MDCCY.

BY THE CELEBRATED

JOHN LA W, Esq;

AFTERWARD
DIRECTOR TO THE MISSISIPI COMPANY.

GLASGOW,

PRINTED AND SOLD BY R. & A. FOIJLI
MD CCL.

MONEY AND TRADE

CONSIDERED.

THere arefeveral propofals of-
fer'd to remedy the difficulties
the nation is under from the great
fcarcity of money.

That a right judgment may be
made, which will be mo ft fafe, advan-
tageous and practicable ; it feems
neceffary, i. that the nature of
money be inquired into, and why
filver was ufed as money preferable
to other goods. 2. that trade be
confidered, and how far money affects
trade. 3. that the meafures have
been ufed for preferving and increaf-
ing money, and thefe now propofed,
be examined.

4 i MONEY AND TRADE
C H A P. I.

Hoiv goods are valued, of barter, of '/liver ; its value
as a metal; its qualities fitting it for money, and of
the additional value it received from being ufed as
money.

Goods have a value from the ufes
they arc applyed to ; and their value
is greater or leffer, not fo much from
their more or lefs valuable, or necef-
fary ufes, as from the greater orleiTer
quantity of them in proportion to the
demand for them, example; water is
of great ufc, yet of little value; be-
caufe the quantity of water is much
greater than the demand for it. dia-
monds are of little ufe, yet of great
value, becaufe the demand for dia-
monds is much greater, than the
quantity of them.

Goods of the fame kind differ in
value, from any difference in their

CONSIDERED. 5

quality, one horfe is better than a-
nother horfe. barley of one coun-
try is better than barley of another
country.

Goods change their value,fromany
change in their quantity, or in the
demand for them. if oats be in
greater quantity than laft year, and
the demand the fame, or leffer, oats
will be lefs valuable.

Mr. Locke fays, the value of goods
is according to their quantity in pro-
portion to their vent, the vent of
goods cannot be greater than the
quantity, but the demand may be
greater : if the quantity of wine
brought from France be a 100 ton,
and the demand be for 500 ton, the
demand is greater than the vent } and
the 100 ton will fell at a higher price,

6 MONEY AND TRADE

than if the demand were only equal
to the vent, fo the prices of goods are
not according to the quantity in pro-
portion to the vent, but in proportion
to the demand.

Before the ufe of money was
known, goods were exchanged by
barter, or con tract; and contracts were
made payable in goods.

This ftate of barter was inconve-
nient, and difadvantageous. I . he
who defired to barter would not al-
ways find people who wranted the
goods he had, and had fuch goods as
he defired in exchange.

2. Contracts taken payable in
goods were uncertain, for goods of
the fame kind differed in value.

3. There was no meafure by
which the proportion of value goods

CONSIDERED. "J

had to one another could be known.

In this ftate of barter there was
little trade, and few arts-men. the
people depended on the landed-men.
the landed-men laboured only fo
much of the land as ferved the occa-
fions of their families, to barter for
fiich neceflaries as their land did not
produce ; and to lay up for feed and
bad years, what remained was unla-
boured ; or gifted on condition of
vaffalage, and other fervices.

The loffes and difficulties that
attended barter, would force the lan-
ded-men to a greater confumption of
the goods of their own product, and a
lefler confumption of other goods ; or
to fuplpy themfelves, they would turn
the land to the product of the feve-
ral goods they had occafion for;tho*

8 MONEY AND TRADE

only proper to produce of one kind,
fo, much of the land was unlaboured,
what was laboured was not employ'd
to that by which it would have turned
to molt advantage, nor the people to
the labour they were mod: fit for.

Silver as a metal had a value in
barter, as other goods ; from the ufes
it was then apply'd to.

As goods of the fame kind differed
in value, fo filver differ'd from filver,
as it was more or lefs fine.

Silver was lyableto a change in its
value, as other goods, from any
change in its quantity, or in the de-
mand for it.

Silver had qualities which fitted it
for the ufe of money.

i . It could be brought to a ftand-

CONSIDERED. 9

ard Infinenefs, fo was certain as to its
quality.

2. It was eafie of delivery.

3. It was of the fame value in one
place that it was in another; or dif-
fered little, being eafie of carriage.

4. It could be kept without lofs
or expence ; taking up little room,
and being durable.

5. It could be divided without
lofs, an ounce in four pieces, being
equal in value to an ounce in one
piece.

Silver having thefe qualities, 'tis
reafonable to think it was ufed as
money, before it was coined, what
is meant by being ufed as money,
is, that filver in bullion was the mea-
fure by which goods were valued: the
value by which goods were exchanged:
B

IO MONEY AND TRADE

and in which contracts were made
payable.

He who had more goods than he
had life for, would choofe to barter
them for filver, tho' he had no ufe for
it; becaufe, filver was certain in it's
quality : it was eafie of delivery: it
could be kept without lofs or expence:
and with it he could purchafe other
goods as he had occafion,in whole
or in part, at home or abroad, filver
being divifible without lofs, and of
the fame value in different places.
If A. B. had ioo fheep, and de-
fired to exchange them for horfes ;
C. D. had 10 horfes, which were
equal to,or worth the ioo fheep, and
was willing to exchange : but as A.
B. had not prefent occafion for the
horfes, rather than be at the expence

CONSIDERED. II

of keeping them, he would barter
his fheep with E. F. who had the
value to give in filver, with which he
could purchafe the horfes at the time
he had occafion.

Or if E. F. had not filver, but
was fatisfied to give his bond for the
filver, or the horfes, payable at the
time A. B. wanted them ; A. B.
would choofe to take the bond paya-
ble in filver, rather than in horfes :
becaufe filver was certain in quality,
and horfes differed much, fo filver
was ufed as the value in which con-
trails were made payable.

Silver was likewife ufed as the
meafure by which goods were valu-
ed, becaufe certain in quality, if A.
B. hadaioo weight of lead, and de-
fired to exchange it for barley, the

B 2

12 MONEY AND TRADE

way to know what quantity of barley
was equal in value to the lead, was by
the filver. if the ioo weight of lead
was equal to five ounces of tine filver,
and 5 ounces of fine filver equal to 20
bolls of barley, then 20 bolls was
the quantity of barley to be given in
exchange for the lead.

Silver being eafie of carriage, fo
equal in one place to what it was in
another; was ufed as the meafure
by which goods to be delivered in
different places wrere valued. If a
piece of wine was to be delivered at
Glafgow by A. B. merchant there,
to the order of C. D. merchant in
Aberdeen: and the value to be delive-
red in oats at Aberdeen by C. D. to
the order of A. B. the wine could
not be valued by the quantity of oats

CONSIDERED. 13

k was worth at Glafgow, nor the oats
by the quantity of wine they were
worth at Aberdeen, wine or oats
might differ in quality , or be more or
lefs valuable at the one place than at
the other, the way to have known
what quantity of oats was equal to the
wine, was by the quantity of filver
each was worth at the places they
were to be delivered, if the piece of
wine was worth at Glafgow 20 ounces
of fine filver, and 20 ounces of fine
filver worth 50 bolls of oats at Aber-
deen ; then 30 bolls w^as the quantity
of oats to be given there in return for
the wine.

Silver being capable of a ftamp,
princes, for the greater convenience
of the people, fet up mints to bring it
to a ftandard, and ftamp it; whereby

14 MONEY AND TRADE

its weight and finenefs was known,
without the trouble of weighing or
fyning ; but the ftamp added nothing
to the value.

For thefe reafons filver was ufed as
money ; its being coined was only a
confequence of its being applied to
that ufe in bullion, tho' not with the
fame convenience.

Mr. Locke and others who have
wrote on this fubject,fay, the gene-
ral confent of men placed an imagi-
nary value upon filver, becaufe of its
qualities fitting it for money,

I cannot conceive how different
nations could agree to put an imagi-
nary value upon any thing, efpecially
upon filver, by which all other goods
are valued ; or that any one country
would receive that as a value, which

* Locke p. 3 i . upon intereft, and p. I . upon money.

CONSIDERED. 15

was not valuable equal to what it was
given for ; or how that imaginary va-
lue could have been kept up. but,
fuppofe France receiving filver at an
imaginary value, other nations recei-
ved it at that value, becaufe received Co
in France : then for the fame reafon
a crown paffing in France for j6 Sols,
fhould pafs in Scotland for 76 pence,
and in Holland for 76 Stivers, but
on the contrair, even in France
where the crown is raifed, 'tis worth
no more than before when at 60 Sols.
It is reafonable to think filver was
bartered as it was valued for its ufes as
a mettal, and was given as money ac-
cording to its value in barter, the
additional ufe of money filver was
applied to would add to its value, be-
caufe as money it remedied the dif-

l6 MONEY AND TRADE

advantages and inconveniencies of
barter, and confequently the demand
for filver increafing, it received an
additional value equal to the greater
demand its ufe as money occafioned.

And this additional value is no
more imaginary, than the value fil-
ver had in barter as a metal, for fuch
value was becaufe it ferved foch
ufes, and was greater or leffer accor-
ding to the demand for filver as a
mettal, proportioned to its quantity,
the additional value filver received
from being ufed as money, was be-
caufe of its qualities which fitted it for
that ufe ; and that value was according
to the additional demand its ufe as
money occafioned.

If either of thefe values are imagi-
nary, then all value is fo, for no goods

CONSIDERED. IJ

have any value, but from the ufes
they are apply'd to, and according
to the demand for them, in proporti-
on to their quantity.

Thus filver having a value, and
qualities fitting it for money, which
other goods had not, was made money,
and for the greater convenience of
the people was coined.

The names of the different pieces
might have been number i . number
2. and fo on ; number 60 would
have been the fame as a crown ; for
the name and (tamp was only to cer-
tify, that the piece had fuch a quan-
tity of filver ink, of fuch a finenefs.

Goods of any other kind that

have the fame qualities might then,

and may now be made money equal

to their value, gold and copper may

C

Itf MONEY AND TRADE

be made money, but neither with fo
much convenience as filver. pay-
ments in copper being inconvenient
by reafon of its bulk; and gold not
being in fo great quantity as to ferve
the ufe of money, in countries where
gold is in great quantity, it is ufed as
money ; and where gold and filver
are fcarce, copper is ufed.

Gold is coined for the more eafie
exchange of that metal, and copper
to ferve in fmall payments ; but filver
is the meafure by which goods are
valued, the value by wThich goods are
exchanged, and in which contracts
are made payable.

As money encreafed,thedifadvan-
tages and inconveniences of barter
were removed ; the poor and idle were
employed, more of the land was la-

CONSIDERED. ip

boured, the product encreafed, ma-
nufactures and trade improved, the
landed-men lived better, and the peo-
plewith lefsdependanceon them.

chap ir.

Of Trade, and how far it depends on money, that the
increafe of the people depends on Trade, of exchange.

Trade is domeffick, or foreign,
domeftick trade is the imployment of
the people, and the exchange of goods
within the country.

Foreign trade has feveral branches.

i. The product and manufacture
being more than the confumption, a
part is exported, and in return foreign
goods are brought home.

2. Selling the goods exported at one
port, and loading there to fell another;
whereby a greater return is made,
than if the goods exported had been
carry'd directly there.

20 MONEY AND TRADE

3. Bringing home the product and
manufacture of other countries, from
whence, and when they are cheap ;
to fnpply countries where, and when
they are dear.

4. Bringing home the product of
other countries, and exporting it in
manufacture.

5. Freighting,orhireingoutfhips.
Domeftick and foreign trade may

be carried on by barter; but not for
fo great a value as by money, nor
with fo much convenience.

Domeftick trade depends on the
money, a greater quantity employs
more people than a lefTer quantity,
a limited fum can only fet a number
of people to work proportioned to
it, and 'tis with little fuccefs laws are
made, for imploying the poor or idle

CONSIDERED. 21

in countries where money is fcarce;
good laws may bring the money to
the full circulation 'tis capable of, and
force it to thofe employments that
are mod profitable to the country:
but no laws can make it go further,
nor can more people be fet to work,
without more money to circulate fo,
as to pay the wages of a greater num-
ber, they may be brought to work
on credit, and that is not practicable,
unlefs the credit have a circulation, fo
as to fupply the workman with ne-
ceffaries ; if that's fuppofed, then that
credit is money, and will have the
fame effects, on home, and foreign
trade.

An addition to the money adds
to the value of the country, fo long
as money gives intereft, it is imploy-

22 MONEY AND TRADE

ed ) and money imployed brings pro-
fit, tho' the imployer lofes. if 50
men are fet to work, to whom 25
{hillings is payed per day, and the
improvement made by their labour be
only equal to, or worth 15 s. yet by
fo much the value of the country is
increafed. but as it is reafonable to
fuppofe their labour equal to 40. s. fo
much is added to the value of the
country, of which the imployer gains
15 s. 15 may be fuppofed to equal
the confumption of the labourers,
who before lived on charity, and 1 o s.
remains to them over their confump-
tion.

If aftone of wooll is worth 10 s.
and made into cloth worth 2 pound ;
the product is improved to four times
the value it had in wooll: the work-

CONSIDERED. 23

men may be fuppofed to confume
more than when they were not im-
ployed ; allow one 4th, the nation is
gainer double the value of the pro-
duct, fo an addition to the money,
whether the imployer gains or not,
adds to the national wealth, eafes the
country of a number of poor or idle,
proportioned to the money added,
enables them to live better, and to
bear a fhare in the publick with the
other people.

Thefirft branch of foreign trade,
which is the export and import of
goods, depends on the money, if one
half of the people are imployed, and
the whole product and manufacture
confumed; more money, by imploy-
ing more people, will make an o-
verplus to export: if then the goods

24 MONEY AND TRADE
imported ballance the goods exported,
a greater addition to the money will
imploy yet more people, or the fame
people before employed to more ad-
vantage ; which by making a greater,
or more valuable export, will make
a ballance due. foifthe money lef-
fens, a part of the people then imploy-
ed are fet idle, or imployed to lefs ad-
vantage ; the product and manufacture
is lefs, or lefs valuable, the export of
confequence lefs, and a ballance due
to foreigners.

The 2d and 3d branches of fo-
reign trade, called the trades of car-
riage ; are monopolized out of Eu-
rope, by thefe countries who have
colonies; and in Europe, by thefe
who fell cheapeft.

Scotland has advantages for trade

CONSIDERED. 25

by which the merchants might un-
derfell merchants in Holland, as
cheapnefs of living, paying lefs to the
publick, having workmen, feamen,
and provifions for victualling cheaper:
but if the Dutch merchant's ftock is
1 0000 lib. and his yearly expence
500 ; he can trade at 1 o per cent pro-
fit, and add yearly 500 lib. to his ftock.
whereas a Scots merchant, whofe
ftock is 500 lib. and his yearly ex-
pence 50; cannot trade fo cheap.

If 'tis ask't how a Dutch merchant
trades who has only 500 lib. ftock ?
he reftrids his expence fo as he can
afford to trade at 10 per cent profit:
or money being in greater quantity
in Holland, whereby it is eafier bor-
rowed, and at lefs ufe; he gets credit
for more at 3 or 4 per cent, by which
D

l6 MONEY AND TRADE

he gains 6 or 7. and unlefs money
be in greater quantity in Scotland, or
expence retrench'd, we cannot trade
fo cheap as the Dutch ; tho' we have
advantages for trade that they have
not, and tho' they be under difadvan-
tages we are not lyable to. by a greater
quantity of money and oeconomy,
the Dutch monopolize the trades of
carriage even from the Englifh.

The 4th branch of foreign trade,
bringing home the product of other
countries, and exporting it in manu-
facture, depends on the quantity of
money, we are fo far from compe-
ting with the Dutch in this trade,that
our wooll was fent to Holland, and
imported from thence in manufacture;
under the difficulty of a prohibition
on the export of the wooll, and on

CONSIDERED. 1J

the import of the manufacture, yet
befides the advantages already named,
which we have for trade over the
Dutch, the material is the product of
our country, and greater privileges are
granted to manufacturers here, than
in Holland.

'Tis alledged, if the prohibition
had continued, manufactures might
have come to perfection.

The advantage fome men made by
manufacture, may have occafion'd the
fetting up of more, while the money
has been diminifhing ; but that money
fo imployed, has been taken from
fome other ufe it was before imploy'd
in: for money cannot ferve in two
places at one time.

'Tis alledged, that the allowing
the wooll to be exported, occafioned

D 2

28 MONEY AND TRADE

the exportation of the money, that at
one time 5000 lib. was fent to Eng-
land to buy wooll. 'tis afkt what be-
came of that wooll? they anfwer, it
was fent to France for wine, then, as
5000 lib. of Englifh wooll may be
worth 8 or 10 thoufand pound in
France; fo the 5000 lib. fent to Eng-
land, faved the fending out of 8 or
1 0000 lib. to France.

Tothcfe who don't throughly ex-
amine the date of this country, it may
feem odd that wooll mould be allow-
ed by law to be exported: but if the
product of Scotland cannot be ma-
nufaclur'd with lefs than 50000 peo-
ple, and the money that can be fpar'd
to manufacture, be only capable to
employ 25000, one half of the pro-
dirt will be loft if it is not allowed to
be exported.

CONSIDERED. 29

The 5th branch, the freightingor
hireing out (hips, depends on the
money, and the other branches of
trade, where fhips are in ufe to be
freighted by Grangers, and fupported
by a great demand for their own
trade; there all forts of (hips are to
be hired cheaper than in other places;
and merchants are fure offuch fhips
as are proper for the goods they load
with, and the countries they trade to.
This trade of freighting brings the
goods of other countries to Holland,
tho' defign'd for fale elfewhere. if
woollen manufacture from England
to Portugal yields 25 per cent profit,
and to Holland 15 ; the Englifh mer-
chant will choofe to fend fuch goods
to Holland for 15 per cent, rather
than to Portugal for 2 5; and the Dutch

30 MONEY AND TRADE

merchant who is able to trade cheaper,
from the cheapncfs of freight, etc. is
fatisfied for the other 10 to carry to
Portugal.

Moft authors who have wrote on
trade divide it into national and pri-
vate, they fay, a merchant may gain
where the nation lofes. if a iooolib.
is exported to the Indies in money or
bullion, and a iooolib. in goods or
provifions; the return worth 8000 lib.
the merchant gains 6000; but as thefe
goods are all confumed in the coun-
try, the nation lofes the 1000 lib.
money or bullion exported.

They don't conllder whether the
8000 lib. of goods imported (all fup-
pofed to be confurn'd in the country)
does not leffen the confmiption of
the product or manufacture of the

CONSIDERED. 31

country, fo as to occafion an addition
to the export, at leaft equal to the
1 000 lib. money or bullion exported,
but allowing they do not leffen the
confumption of the goods of the
country, and the ufe of them be not
at all neceffary ; yet thefe goods being
worth 8000 lib. at home or abroad,
the nation gains 6000. if the people
confume them, and in extravagant
ufes, that's not the fault of the trade,
nor for that reafon fliould that trade be
call'd difadvantageous; it is the fault
of the government, who ought to hin-
der the too great confumption of fo-
reign goods \ efpecially, fuch as might
be wanted without caufing a greater
confumption of the goods of the coun-
try, that care being taken, by making
the vent lefs profitable at home, than

32 MONEY AND TRADE

abroad ; merchants would export
them, or for the future leflen the
import.

If Eaft-India goods that fell for a
iooolib. in England, are only worth
abroad 800 lib, the duty payed at their
entry being returned, and more given
as a draw- back to encourage the ex-
port, their vent abroad will be more
profitable than in England.

A people may confume more of
their ov/n or foreign goods, than the
value of the product, manufac1:ure,and
profits by trade ; but their trade is not
difadvantageous, it is their too great
confumption: and the too great con-
fumption of the product and manu-
facture of the country, may be as
hurtful as that of foreign goods ; for,
if fo much is confumed, that the re-

CONSIDERED. 33

mairider exported won't pay the con-
fumption of foreign goods , a bal-
lance will be due, and that ballance
will be fent out in money or bullion.

A nation may gain where the mer-
chant lofes, but wherever the mer-
chant gains, the nation gains equal,
and fo much more , as the mainte-
nance and wages of the people em-
ploy'd and the duty on the goods a-
mounts to. if a fhip infur'd is loft,
the nation lofes, and the merchant
lofes nothing; but in that cafe the in-
fureris the merchant, and lofes equal
to the nation.

As trade depends on money, fo
the encreafe or decreafe of the people
depends on trade, if they have em-
ployment at home, they are kept at
home ; and if the trade is greater than
E

34 MONEY AND TRADE

ferves to employ the people, it brings
more from places where they are not
employ 'd. Sir William Petty values a
man at 20 years purchafe, by that
computation a feaman whofe wages
is forty fhil. a month, is valued 480
lib.

Scotland has a very inconfiderable
trade, becaufe fhe has but a very fmall
part of the money, there is a little
home trade, but the country is not
improv'd, nor the producl manufac-
ture, there is a little of the firft
branch of foreign trade, and that is
carried on with great difadvantage to
the people, who pay dearer for moft
foreign goods, and are worfe ferv'd,
than other nations: if they have any
cheaper, 'tis from the lower duty on
the import, in Scotland low prices

CONSIDERED. 35

are given for goods bought up to be
exported, the merchants profit being
great : if a 1 00 (lone of wooll is worth
in Holland ten piece of linen cloth,
thefe ten pieces are fold in Scotland
for the value of a 180 or 200 ftone
of fuch wooll. fuch goods as do not
yield that great profit, are not expor-
ted ; and thefe that do, are not expor-
ted in any quantity, the merchant's
ftock being fmall. Scotland has no
part of the other branches of foreign
trade, not being able to trade fo cheap
as other nations.

Some think if intereft were lowered
bylaw, trade would increafe, mer-
chants being able to employ more
money and trade cheaper, fuch a law
would have many inconveniencies,
and it is much to be doubted, whe-
E 2

$6 MONEY AND TRADE

ther it would have any good effeft;
indeed, if lownefs of interefl were the
confequence of a greater quantity of
money, the Hock apply'd to trade
would be greater, and merchants
would trade cheaper, from theeafinefs
of borrowing and the lower interefl
of money, without any inconvenien-
cies attending it.

Tho' interefl: were at 3 per cent in
Holland, and continued at 6 in Scot-
land ; if money were to be had equal
to the demands at 6, the advantages
we have for trade, which the Dutch
have not, would enable us to extend
trade to its other branches, notwith-
ftanding the difference of interefl.

If money in Scotland were equal
to the demands at 6 per cent, the
Dutch could not trade fo cheap in

CONSIDERED. 37

herring; the hinderances of that
trade being the confequences of the
fcarcity of money, the materials for
carrying on the fifhing are cheaper in
Holland, but the cheapnefs of vi&u-
alling alone would ballance that, and
the dearth of thefe materials, as ofo-
ther foreign goods, coming from the
fcarcity of money; that being reme-
ded, thefe materials, and other foreign
goods that are not the product of Hol-
land, would be fold as cheap in Scot-
land.

Exchange, is when a merchant
exports to a greater value than he
imports, and has money due abroad ;
another importing to a greater value
than he exported, has occafion for
money abroad: this laft by paying in
money to the other, of the weight and

38 MONEY AND TRADE

finenefs with that is due him, or to
that value, faves the trouble, hazard ,
and expence, to himfelf of fending
money out, to the other of bringing
money home, and to both the expence
of re-coy ning.

So long as foreign trade, and ex-
pence kept equal, exchange was at the
par: but when a people imported for
a greater value, or had other occafions
abroad, more than their export, and
the expence of foreigners among them
would ballance ; there was a neceflity
offending out the ballance in money
or bullion, and the merchant or gen-
tleman who owed, or had occafion for
money abroad, to fave the trouble,
expence and hazard offending it out,
gave fo much per cent to another, as
the trouble, expence and hazard was

CONSIDERED. 39

valued at. thus exchange rofe above
the par, and became a trade.

Mr. Mun on trade, page 100,
fays, the exchange being againft a na-
tion, is of advantage to that nation,
and fuppofes, if a 100 lib. at London
is worth no more than 90 lib. of the
fame money at Amfterdam, the Dutch
to fend 500000 lib. of goods to En-
gland, and the Englifh 400000 lib. of
goods to Holland; it follows, that
the money due the Englifh at Am-
fterdam, will ballance 440000 lib. due
to the Dutch at London: fo 60000
lib. pays the ballance. Mr Mun does
not confider, that the Dutch goods
worth 500000 lib. when exchange
was at the par, are worth at London
555555 1- when 90 lib. at Amfter-
dam is worth a 100 lib. at London.

40 MONEY AND TRADE

and the 400000 lib. of Englifh goods
in Holland, are only worth 360000
lib. that fum being equal by exchange
to 400000 lib. in England, fo in place
of England's having an advantage of
40000 lib. as he alledges by the ex-
change being againft her: fhe pays
95555 lib.mcre,than if exchange had
been at the par.

When exchange is above the par,
it is not only payed for the fums due
of ballance, but affecls the whole ex-
change to the place where the bal-
lance is due. if the ballance is 20000
lib. and the fums exchanged by mer-
chants who have money abroad, with
others who are owing, or have occa-
fion for money there, be 60000 lib.
the bills for the 60000 lib. are fold
at or near the fame price, with the
20000 lib. of ballance.

CONSIDERED. ^t

It likewife affe&s the exchange to
countries where no hallance is due.
if the exchange betwixt Scotland and
Holland is 3 per cent, above the
par againft Scotland, betwixt Eng-
land and Holland at the par, tho' no
ballance is due by Scotland to Eng-
land, yet the exchange with England
will rife ; for, a 100 lib. in England
remitted to Scotland by Holland, will
yield 103 lib. fo betwixt Scotland and
England it may be fuppofed to be had
at 2 per cent, being lefs trouble than
to remit by Holland.

Goods are fold to foreigners, ac-
cording to the firft coft. if goods
worth a 100 lib. in Scotland, are
worth 130 lib. in England, thefe
goods will be exported, 30 per cent
being fuppofed enough for the charges
F

42 MONEY AND TRADE

and profit* if the price of thefe goods
lower in Scotland from a ioo lib. to
80, the price in England will not con-
tinue at a 1 30 ; it will lower propor-
tionally, for either Scots merchants
will underfell one another, or Englifh
merchants will export thefe goods
themfelves. fo if they rife in Scotland
from a 100 lib. to 120 ; they will rife
proportionably in England, unlefs
the Englifh can be ferved with thefe
goods cheaper from other places, or
can fupply the ufeofthem with goods
of another kind, this being fuppofed,
it follows that,

By fo much as exchange is above
the par, fo much all goods exported
are fold cheaper, and all goods impor-
ted are fold dearer than before, if a
merchant fend goods yearly to Eng-

CONSIDERED. 43

land firft coft, charges and profit 6000
lib. money in England of the fame
ftandard with money in Scotland,
and no ballance due j but a ballance
due to Holland, railing the exchange
3 per cent above the par to Holland,
and affecting the exchange to Eng-
land 2 per cent, 5882 lib. 7 fh. in
England pays the goods, that fum by
exchange being equal to 6000 lib. in
Scotland, fo that a ballance due to Hol-
land, by raifing the exchange to other
countries,occafions alofs to Scotland
of 117 lib. 13 fh. on the value of
6000 lib. of goods fent to England.
Englifh goods are fold fo much
dearer, if an Englifh merchant fends
goods yearly to Scotland, firft cod,
charges and profit 6000 lib. 6120 lib.
rauft be payed for thefe goods in '
F 2

44 MONEY AND TRADE

Scotland , being only equal to 6000
lib. in England, if the exchange had
been at the par, the Scots goods fent
to England would have fold 1 17 lib.
14 fh. more, and the Englifh goods
fent to Scotland 120 lib. lefs.

Thus to all places with whom
exchange is above the par, goods fent
out are fold fo much lefs, and goods
brought from thence are fold fo much
dearer, as the exchange is above the
par; whether fent out, or brought in,
by Scots or foreign merchants.

The merchant who deals in Eng-
li(h goods gains no more than when
exchange was at the par, tho' he fells
dearer ; nor the merchant who deals
in Scots goods lefs, tho' he fells chea-
per ; they have both the fame profit
as when exchange was at the par.

CONSIDERED. 45

Scotland pays 2 per cent more for
Englifti goods, and England 2 per
cent lefs for Scots goods: all, or a
great part of the lofs falls at laft on
the landed man in Scotland, and it is
the landed man in England has all,
or a great part of the benefit.

Nations finding the export of mo-
ney or bullion to pay the ballancc due
by trade, a lofs of fo much riches, and
very hurtful to trade, might havedif-
charged the import of fuch goods as
the people could beft want ; or laid a
duty on them, fuch as might have
leffen'd their confumption:they might
have given encouragement to induftry,
whereby the product would have been
encreas'd and improv'd, or difcoura-
ged extravagant confumption, where-
by the overplus to export would have

4^ MONEY AND TRADE

been greater ; any one of thefe me-
thods would have brought trade and
exchange equal, and have made a bal-
lance due them: but in place of thefe
meafures, they prohibit bullion and
money to be exported, which could
not well have any other effect, than
to raife the exchange equal to the ha-
zard, fuch laws added to the export
of money or bullion, which maybe
fuppofed 3 per cent more : and as thefe
laws by fuch effect were hurtful, ma-
king all goods exported fell yet 3 per
cent cheaper,and all goods imported 3
per cent dearer; the ftricter they were
execute, the higher the exchange rofe,
and the more they did hurt, the bal-
ance was (Hllfent out in money or bul-
lion, by the merchant who owed it, by
the banker who gave the bills, or by
the foreigner to whom it was due.

CONSIDERED. 47

Suppofe the money of Scotland,
England, and Holland of the fame
weight and finenefs. Scotland to trade
with no other places, the exchange
at the par the yearly export from
Scotland, firft cod 300000 lib. char-
ges and profit 30 per cent, goods im-
ported 280000 lib. charges and profit
30 per cent, one half of the trade to
be carried on by Scots merchants, the
other half by Englifh and Dutch.

Due to Scotland for one half*|
of the export carried out by J> 195 OOO
their own merchants J

Due for the other half car- "J -*

riedoutby Englifh and Dutch. J 150000J 34500©

Due by Scotland to England"]
and Holland for goods impor- j> 1 82000
ted by Englifh and Dutch. — J

Due for goods imported byl 1

Scots merchants »— J 140000 J 322000

48 MONEY AND TRADE

The expence of Scots-men abroad,
more than of foreigners in Scotland,
40000 lib. if this is fuppofed the year-
ly ftate of the trade and expence of
Scotland, there will be a ballancedue
of 17000 lib. and unlefs the Scots
retrench the confumption of foreign
goods, fo as to import lefs ; or retrench
the confumption of their own goods,
fo as to export more ; or increafe, or
improve their product, fo as the ex-
port be greater or more valuable ; or
retrenchin their expence abroad, fince
that ballance muft be paid it will go
out in money or bullion : and occa-
sions the exchange to rife 3 per cent,
the prohibition on the export of mo-
ney 3 more, if Scots-men export it,
the Nation faves the 1020 1. exchange
on the 17000 of ballance due, which

CONSIDERED. 49

is loft if Englifh merchants export
it; but the lofs fuch a rife in exchange
occafionson the goods, is more con-
fiderable. the 195000 lib. due abroad
for goods fent out of Scotland by
Scots merchants, will be payed with
183962 lib. Englifh or Dutch money,
that fum being equal by exchange at
6 per cent to 195000 lib. in Scot-
land, the 150000 lib. due for firft
coil of goods carried out by Englifh.
or Dutch merchants, will be payed
with 1 41 510 lib. Englifh or Dutch
money, that fum being equal to
150000 lib. in Scotland, the 182000
lib. duebyScotland for goods impor-
ted by Englifh and Dutch merchants,
will come to 192920 lib. in Scotland,
and the 140000 lib. firft coft of goods
brought home by Scots merchants,
G

50 MONEY AND TRADE

will come to 148400 lib. in Scotland,
fothe accompt will run thus.

Due to Scotland for goods exported 183962
Brought from abroad firft cofl 1 40000

Ballance of expence abroad 40000

Due to Scotland abroad 3962

Due by Scotland for goods impor-1
ted by r nglifli and Dutch J 192920

Englifh and Dutch take back in goods 1 5 0000

Due to Englifh and Dutch in Scotland 42920

3 9 6 2 lib . d ue abroad to Scotland in ~)
Scots money j 41 99

Remains due by Scotland. 38 "f 2 1

So the rife in the exchange of 3 per
cent by the ballance due of 17000 lib.
and 3 more by the prohibition on
the export of money, occafions a lofs
to Scotland of2i72i 1. and makes

CONSIDERED. 51

the next year's ballance 38721 lib.
the/ the trade be the fame as before,
of which 2 1 72 1 lib. loft by exchange,
one half would be faved if money
were allowed to be exported.

Since the exchange being 6 per cent
above the par, occasions the lofs of
2 1 72 1 lib. then raifing the money 8
and a one third per cent, having raif-
edthe exchange with England to 14
per cent, and with Holland to 30,
makes the lofs proportionably greater:
Scots goods being fuppofed to conti-
nue at the fame prices they were fold
for, before the money was raifed, or
not to rife in the fame proportion
with the money, for when exchange
was at the par, a 100 lib. of Scots
goods were fold abroad for a 130 lib.
Englifti money; but 114 lib.Englifh
G2

52 MONEY AND TRADE

money, being now equal by exchange
to a 130 lib. in Scotland, the Scots
merchant can afford to fell the fame
quantity of goods for a 114 lib. that
he fold before at a 130, and have the
fame profit. To foreign goods worth
abroad a 100 lib. and fold in Scot-
land for a 130 lib. when exchange
was at the par ; cannot be fold now
forlefsthana i5olib.inScotland,that
fum being only equal to a 130 lib,
Englifh money; and the merchant's
profit is no greater, than when he
fold the fame quantity of goods for
a 130 lib.

It may not be improper to con-
fider what confequences would attend
the lowering the money to the Eng-
lifh ftandard, and allowing it to be
exported.

CONSIDERED. 53

The former ftate of trade I have
fuppofed to be carried on, one half
by Scots merchants, the other half
by Englifhand Dutch; but as moft
of the trade is carried on by Scots
merchants, I fhall fuppofe this ftate
of trade accordingly, the one or the
other will clear the matter in queftion.

The ftate of trade now, and ex-
change fuppofed at 1 5 per cent to Eng-
land, and 30 to Holland, the whole
export of Scotland to be 300000 lib.
of which 250000 lib. carried out by
Scots merchants, fold at 30 per cent
profit and charges 325000 lib.

In Englifh money 282608

Exported by foreigners for 50000I. ^»
Jn Englifh money J 43478

The whole export 3 26086

54 MONEY AND TRADE

Goods imported 306086

Spent abroad. 40000

Due of ballance by Scotland. 30000

Money being lowered to the P ijg-
lifli ftandard, and aliow'd by law to
be exported ; will bring the exchange
with England to 2 or 3 per ^ent,and
with Holland to 17 or 18, notwith-
ftanding of the ballance due. for, as
a 100 lib. in Edinburgh, would then
be equal to 100 lib. at London, and
being allowed to be exported ; none
would give above 102, or 3 here for a
100 lib. at London: becaufe the
trouble and charge of fending it to
London, would be valued no higher,
the export, import, and expence a-
jbroad fuppofed to continue the fame ;
a ballance would then be due to Scot-
land.

CONSIDERED. 5$

The fere of trade, exchange at
3 per cent to England, and propor-
tionately to other places.

Due in Englifti money, for 3 25000 1."|
firft colt, charges and profit of goods fent f 3 1 $5 34
out by Scots merchants. j

Due in Englifh money, for $0000 1. 'J
of goods exported by foreigners. J 48544

The whole export 3 6407 8

Of this deduce the value of goods im-"|

ported. j 306086

And the expence abroad. 40000

There will be a ballance due to Scot- "1

land, of j 17992

As this ballance due to Scotland,
would bring exchange to the par, and
3 per cent on the Scots fide ; 3 more,
becaufe money in England is prohi-
bited to be exported ; 100 lib. in Scot-

$6 MONEY AND TRADE
land, would be worth 106 lib. in Eng-
land, and proportionably in other
places, fo the ftate of trade would then
be thus.

Due in Englifii money for 3 25000 1.
firft coft, charges and profit of Scots
goods fent out by Scots merchants, and
5 0000 1. exported by foreigners .

>397coo

Of this fpent abroad . 40000

Imported from abroad. 306086

Ballance then due to Scotland. 5 1 4 1 4

If the yearly export be as great as
I fuppofe it, and the ballance only
20000 pounds; then lowering the
money to the Englifh ftandard, will
make a ballance due of 514 14 lib. tho*
the money is not allowed to be expor-
ted.

It may be objected, that fuch an
alteration in the exchange, lowering

CONSIDERED. 57

the value of foreign money; might
hinder the fale of our goods abroad.'
for, linen-cloth bought in Scotland
for a 100 lib. and fold at London for
a 1 15 lib. yields by exchange 31 per
cent profit, but if exchange were 6 per
cent on the Scots fide, the profit is
only 9 per cent.

It is anfwered. if an Englim mer-
chant takes bills on Scotland for a
1 000 lib. to lay out on linen-cloth, the
exchange then at the par: the linen-
cloth is fold in England according to
the firft coft, charges and ufual profit,
next year the exchange is on the Eng-
lifh fide, the linen is fold in England
cheaper than before, the third year
exchange returns to the par, the linen
is then fold in England as the firit
year, if the firft coft of linen is dearer,
H

58 MONEY AND TRADE

the confumer pays the more for it,
the merchant's profit is the fame.

All nations endeavour to get theex-
change as much as they can on their
fide, the exchange from Holland to
England is 1 2 or 15 per cent, to Scot-
land 30 per cent, to France 40 or 50,
fometimes more ; yet Dutch goods
fell in thcfe countries, the merchant
has his profit the fame as when ex-
change was lower, the confumer pays
more for them. Englifh cloth is fold
at Paris from 18 to 20 livres the
French ell. when the lued'ore is at
12 livres, from 20 to 23, when the
lued'ore is at 14 livres : becaufe the
exchange to England is dearer, in pro-
portion as the French money is rais'd.
Moft goods fent from Scotland are
fuch as foreigners won't want, tho'

CONSIDERED. 59

they payed 10 or 20 per cent more
for them, we have an example of
this in thewoolL during --the prohi-
bition, wooll fold in Holland and
France for double the firft coft. now
it has fallen to 30 or 40 per cent
profit, prices are given for goods, ac-
cording to their firfl: coft, charges, and
ufual profit ; where prohibitions are,
the hazard of exporting contrair to
law is valued, wooll is of lefs value
now in Holland than in time of peace,
becaufe the vent of their woollen ma-
nufacture is lefs; but tho' wooll were
as valuable in Holland as before, and
tho'a Dutch manufacturer would give
200 lib. for wooll that coft only a
100 lib. in Scotland, rather than want
it: yet as he knows the prohibition is
taken off, and that the Scots merchants
Hz

60 MONEY AND TRADE

can afford to fell cheaper ; he won't
buy unlefs he can have it at a reafon-
able profit, fo either the Scots mer-
chants bring down the price, by un-
derfelling one another ; or the Dutch
merchant commiffions it himfelf. if
a duty were put on fuch goods whofe
value abroad would bear it, the mer-
chant would gain the fame, 'tis the
foreigner pays the duty,

Befides, lowering the money may
not lower the prices abroad, for, as
when money was raifed, goods may
have rofe in proportion, or have been
made worfe ; fo as a i oo lib. after the
money is lower'd will have 33 crowns
and I more filver in it, than a 1 00 lib.
had before ; fo a greater quantity of
goods may be bought with a 100
lib. than before, or the goods may

CONSIDERED. 6l

be made better : efpecially the linen-
cloth, fince the material would be
imported forlefs. but, allowing that
upon the lowering the money, goods
fold in Scotland as before, and were
made no better ; and allowing that
one third or more of the goods ex-
ported, could not be raifed in their
prices abroad; becaufe foreigners
might be ferved cheaper with the fame
kind of goods from other places, or
might fupply the ufe of them with
goods of another kind ;or might con-
fume lefs of them ; yet, that ought
notto hinder fucha regulation of the
money and exchange ; for a draw-
back might be given upon the export
of fuch goods, whofe prices abroad
were not great enough to yield a rea-
fonable profit.

6z MONEY AND TRADE

But left fuch an alteration in the
exchange, or undervaluing foreign
money, fhould leiTen the export of
goods : it may not be advifeable, un-
lefs a fund were given, out of which
draw- backs might be payed to encou-
rage export, and an addition be made
to the money, whereby the people
may be fet to work, for without fome
addition to the money, 'tis not to be
fuppofed next year's export can be e-
qual to the laft: it will leiTen as money
has leflened;a part of the people then
imployed being now idle ; not for
want of inclination to work, or for
want ofimployers, but for want of
money to imploy them with.

CONSIDERED. 6$

CHAP. III.

Of the different meafures which have been ufed topre-
ferve and increafe money, and of banks.

1 he meafures have been ufed to
preferve and increafe money, have
in fome countries been oppofite to
what has been ufed in others rand op-
pofite meafures have been ufed in the
fame countries, without any differing
circumftances to occafion them.

Some countries have raifed money
in the denomination, when others
have lowered it ; fome have allay'd it,
when others who had allay'd it have
rectified it j fome have prohibited the
export of money under fevered penal-
ties, when others have by law allow-
ed it to be exported ;fome thinking to
add to the money, have obliged tra-
ders to bring home bullion, in pro-

64 MONEY AND TRADE

portion to the goods they imported,
mod countries have tryed fome or
all of thefe meafures, and others of
the fame nature, and have tryed con-
trary meafures at one time, from what
they nfed immediately before, from
the opinion, that fince the method
ufed had not the effecl: defigned, acon-
trary would: yet it has not been found,
that any of them have preferved or
increafed money ; but on the contrair.
The ufe of banks has been the
befl: method yet practifed for the in-
creafe of money, banks have been
long ufed in I taly, but as I am inform-
ed,the invention of them was owing to
Sweedland. their money was copper,
which was inconvenient, by reafon
of its weight and bulk ; to remedy
this inconveniency, a bank wasfet up

CONSIDERED. 65

where the money might be pledged,
and credit given to the value, which
paftin payments, and facilitate trade.

The Dutch for the fame reafon fet
up the bank of Amfterdam. their
money was filver, but their trade was
fo great as to find payments even in
filver inconvenient, this bank like
that of Sweedland, is a fecure place,
where merchants may give in mo-
ney, and have credit to trade with,
befides the convenience of eafier and
quicker payments, thefe banks fave
the expence of cafheers, the expence
of bags and carriage, lofies by bad mo-
ney, and the money is fafer than in
the merchants houfes, for 'tis lefs ly-
abletofireor robbery, the neceffary
meafn res being taken to prevent them.

Merchants v/ho have money in
I

66 MONEY AND TRADE

the bank of Amfterdam, and people
of other countries who deal with
them, are not lyable to the changes in
the money, by its being allay'd or al-
tered in the denomination : for. the
bank receives no money but what's of
value, and is therefore called bank-
money ; and tho' raifed in current
payments, it goes for the value it was
pledged for in bank-payments, the
AG o of the bank changes a quarter
or a half p# cent, as current money is
more or lefs fcarce.

Banks where the money is pledg'd
equal to the credit given, are fure;
for, tho' demands are made of the
whole, the bank does not fail in pay-
ment.

By theconftitution of this bank, the
whole fum for which credit is given,

CONSIDERED. 6j

ought to remain there, to be ready at
demand; yet a fum is lent by the ma-
nagers for a itock to the lumbar, and
'tis thought they lend great fums on
other occafions. fo far as they lend
they add to the money, which brings
a profit to the country, by imploying
more people, and extending trade;
they add to the money to be lent,
whereby itiseafier borrowed, and at
lefs ufe;and the bank has a benefit:
but the bank is lefs fure, and tho' none
fuffer by it, or are apprehenfive of
danger, its credit being good ; yet if
the whole demands were made, or
demands greater than the remaining
money, they could notallbefatisfied,
till the bank had called in what fums
were lent.

The certain good it does, will more

12

63 MONEY AND TRADE

than ballance the hazard, tho' once in
two or three years it failed in pay-
ment ; providing the fums lent be well
fecured : merchants who had money
there, might be difappointed of it at
demand, but the fecurity being good,
and intereft allowed ; money would be
had on a fmall difcount, perhaps at
the par.

Laft war, England fetup a bank
to have the conveniencies of that at
Amsterdam, and by their conftitu-
tion to increafe money, this bank
was made up of fubfcribers, who lent
the King 1200000 lib. at 8 and a
third per cent, for 1 1 years, on a par-
liamentary fund ; and were priviledg-
ed bankers for that time, the fumdue
by the government was a fecurity to
the people, to make good any lolfcs
the bank might fuffer.

CONSIDERED. 6<)

This bank was fafer than thegold-
fmiths notes in ufe before, it made a
great addition to the money, having
a much greater fum of notes out, than
money in bank, and the fum lent the
King, which was the fund belonged to
the fubfcribers, was negotiated at pro-
fit, and had the fame effect in trade as
money. I don't know how their notes
came to be at difcount, whether from
the circumftances of the nation, or
from ill management.

The fund of the bank of Scot-
land was a i ooooo 1. of which a tenth
was payed in. this bank was fafer than
that of England, there being a regi-
fter whereby moft fums lent were fe-
cured. its notes went for 4 or 5 times
the value of the money in bank, and
by fo much as thefe notes went for

70 MONEY AND TRADE

more than the money in bank ; fo
much was added to the money of me
nation.

This bank was more ufeful than
that of Amfterdam, or Engiar. J ; its
notes pafling in molt payments, and
through the whole country :the bank
of Amfterdam being only for that
town, and that of England of little
ufe but at London.

The ftop of payments which hap-
pened to the bank of Scotland, was
forefeen, and might have been pre-
vented, the confumption of foreign
goods, andexpencein England, be-
ing more than the export of goods
did pay ; the ballance fent out in mo-
ney leflened the credit of the bank,
for as credit is voluntary, it depends
on the quantity of money in the

CONSIDERED. Jl

country, and increafes or decrcafes
v ith it coy ning notes of one pound
fupported the bank, by furnijhing
pa; crfor fraall payments, and there-
by preventing a part of the demand
for Ttoney: by thefe notes the bank
might have kept its credit, till other
methods had been taken to fupply the
country with aoney ; had not a report
of raiung the money occafioned an
extraordinary demand, which in few
days exhaufted the money in bank,
and put a flop to payments.

It would not have been eafie in
that fcarcity of money to have got
enough to fupport the bank, tho' men
of the belt credit had undertaken it ;
that report of raifing the money ha-
ving only occafioned a demand from
the people inEdinburgh. in a ihort

JZ MONEY AND TRADE

time notes would have come in fo faft
from the country, that what money
could have been got, would not have
anfvvered the demand.

If the privy council had lowered
the money, the Englifh crown to 5 s.
and the other money in proportion,
to take place 2 pence p. crown in 3
days, and the other 3 pence in a
month ; theoccafion of the demand
being removed, in all appearance mo-
ney would have been returned to the
bank.

If the ftateof the bank had been
known, or fufpected by the people;
fuch a proclamation would have had
the fame effect, tho' the ftop of pay-
ment had then happen'd. in that cafe,
the fupport of the bank might have
been the narrative of the proclamation;

CONSIDERED. 73

the fecurity being good, few or none
would have kept their money tolofs,
rather than return it to the bank, and
if in 3 days money had not come in
fo faft as expected, their lordfhips by
a 2d. proclamation might have low-
ered the crown to 5 fh. to take place
then, and 6 pence more in 3 days,
when the credit of the bank had been
re-eftablifhed, the money might have
been cryed up, if that had been ne-
ceflary, the crown to 5 fh. and 5 pence,
and the other money in proportion
as it was before.

Some are againft all banks where
the money does not lie pledged equal
to the credit. 1. they fay the demand
may be greater than the money in
bank, fecondly, if we are declining
in our trade, or money, we are not at
K

74 MONEY AND TRADE
all, orarelefsfenfible of it: and if the
bank fail, we are in a worfe condition
than before.

To the firftit's anfwered,Tho' the
nation had no benefit by the addition
the bank makes to the money ; nor
the people by being fupply'd with
money when otherwife they could
not, and at lefs intereft; and tho' the
proprietors had no gain by it: the other
conveniencies, as quicker and eafier
payments, &c. are more than equal
to that hazard; or bank notes, gold-
fmithsand bankers notes, would not
be preferred to money, every body
knowing fuch a ftop may happen to
the bank, and that gold-fmiths and
bankers may fail.

The other objection is the fame
as to fay, a merchant who had a fmall

CONSIDERED. J5

itock, and was capable of imploying
a greater ; if a fum were offered him
without intereft,equal to what he had,
and more as his own increafed, mould
refufe it, becaufe he might fancy him-
felf richer than he was, and if his own
ftock decreafed, that fum lent would
betaken from him.

If 15000 isfuppofed the money
in bank, and 75000 lib. of notes out;
60000 lib. is added to the money of
the nation, without intereft: for what
is payed by the borrowers, is got by
the proprietors, as the money of the
nation increafes, the credit of the
bank increafes, and the fum of notes
out is greater ; and fb far from making
the people lefs fenfible of the conditi-
on of the country, a furer judgment of
the (late of trade and money may be
K2

j6 MONEY AND TRADE

made from the books of the bank,than
any other way.

If trade can be carried on with a
iooooo lib. and a ballance then due
by foreigners ; the fame meafures, and
a greater quantity of money, would
make the ballance greater, nor is
that additional money the bank fur-
nifhes, to be fuppofed will be loft, if
by a ballance due from trade the di-
ver money increafes: that credit may
fail from an accident when money is
plentiful, and would foon be recovered;
'tis only loft by a fcarcity of money,
fuch a credit may fupport trade, in
cafes where without it trade would
fink, but cannot do prejudice.

Another objection is made againfl:
the bank, that it encouraged the ex-
portation of money, by furnilhing

CONSIDERED. jy

Cims in fuch fpecies as were of moft
vaJue abroad, to anfwer this objection,
I fhall make a fuppofition. A. B.
merchant has occafion for a iooolib,
in Holland, and defiresC. D. banker
to give him a bill for that value ;
there is no money due in Holland to
Scots merchants, fo C. D. muft ex-
port the money to pay the bill he
draws: but, there being no bank, nor
any poffibility of getting a iooo lib,
in 40 pence pieces, he fends out mo-
ney of different fpecies. this does not
hinder the money to go out, but
makes the exchange dearer by 2 or 3
percent, than it would have been if 40
pence pieces could have been got. and
tho' no other money were left, but
old marks, if a ballance is due, thefe
will go out, tho* not worth 10 pence:

78 MONEY AND TRADE

the exchange will be fo much higher,
the profit of exporting is the fame ;
and fo far from doing hurt to the
country, the bank by furnifhing fuch
pieces as could be exported to lead
lofs, kept the exchange 2 or 3 per cent
lower than otherwife it would have
been, and faved yearly the fending
out a confiderable fum to pay a grea-
ter ballance, the higher exchange
would have occafioned.

CHAP. IV.

The fever -almeafures now propofedy confidered. ast rai-
fingor allaying the money, coynhg the plate, regulat-
ing the ballance of trade. or> re-cflablijhing the hank.

When I ufe the words, raifing the
money, I defire to be underftood
raifing it in the denomination ; for I
do not fuppofe it adds to the value.

There is no way filver can be made

CONSIDERED, 79

more valuable, but by leflenlng the
quantity, or increafing the demand
for it. if the export and confumption
of filver be greater than the import,
or the demand be increafed; filver
will be of more value, if the quantity
imported be greater than the quanti-
ty exported or confumed, or the de-
mand leflened; filver will be of lefs
value.

If raifing or allaying the money
could add to its value, or have any
goodeffeft on home or foreign trade ;
then no nation would want money,
a ioolib. might beraifed or allayed
to 2, to 10, to a ioo times the deno-
mination it had, or more as there were
occafion. but as 'tis unjufl to raife, or
allay money ;becaufe, then all con-
tra&s are payed with a leffer value

So MONEY AND TRADE

than was contracted for ; and as it has
bad effects on home or foreign trade:
fo no nation praclifes it, that has re-
gard to juftice, or underftands the na-
ture of trade and money, if A. B.
fell 12 chalder of victual for a ioolib.
payable in 6 months, with which he
is to pay bills of exchange of that va-
lue, to be drawn on him then from
France for wine he has commifllon'd ;
and in that time the money israifed
or allayed to double, the ioolib. A.
B. receives will only pay half the bill
he has to pay, being only equal to
50 lib. of the money he contracted
for. nor will that 100 lib. buy the
fame quantity of goods of the coun-
try, that a 100 lib. bought before: it
will pay where money is due, and
fatisfie part contracts made upon the

CONSIDERED. 8l

faith of the pnblick, becaufe the
prince fays every man fhall take half
what is owing him in full payment.
but in bargains to be made, the value
of the money will be confidered ;
goods will rife, tho' perhaps not to
the proportion the money is raifed ;
and fuch perfons as do not raife their
goods, equal to the money, are im-
pofed on.

When 6 pence is raifed to 1 2 pence,
the 6 pence is worth 12 pence ; but
the value of the pence is lowered to
half-pence.

To explain this matter better, I
fhall fuppofe when money is raifed,
goods rife, or not.

If goods rife, then railing the mo-
ney has not the effecl: defigned. if
•a piece of ferge is fold for 40 fh. and
L

82 MONEY AND TRADE

the fhillingbe raifed to 1 8 pence, the
piece of ferge will be fold for 3 lib.
this adds to the tale of the money ,and
pays debts with two thirds of what
is due, but does not add to the mo-
ney, this is the natural confequence
ofraifing the money; for, it is not
the found of the higher denomination,
but the value of the filver is confide-
red.

If, when money is raifed, goods
keep the prices they had before : then
all goods exported are fold for a lefler
value abroad, and all goods imported
are fold dearer, a half-crown is raif-
ed to 40 pence, and that half-crown
buvs the fame quantity of goods 40
pence bought before ; then the mer-
chant who fends goods to Holland.,
to the value of 300 lib. which are fold

CONSIDERED. 83

for 390 lib. there, would gain 220 lib.
on the value of 300 lib. exported: be-
caufe, 390 lib. in Holland, would be
equal to, or worth by exchange at the
par, or fentin bullion, 520 lib. in Scot-
land, that trade would bring no more
profit to the nation, than when the
return of the goods yielded only
390 lib. for, 390 lib. before it was
raifed, had the fame quantity of filver,
that 520 lib. rais'd money would have;
and bought as great a quantity of
foreign goods, but that trade would
be fo profitable to the merchant, that
more people would deal in it than
could get goods to buy ; and as more
buyers than fellers would raife the
prices here, fo one merchant under-
felling the other would lower the
prices in Holland, but tho' the prices
L2

84 MONEY AND TRADE

kept low here, and our merchants
kept up the prices abroad: the Dutch
knowing the goods were fo cheap in
the country, would buy none from
our merchants, but commiflion them
in return of goods they fent.

Suppofe the yearly export firft coft
300000 lib. fold abroad 390000 lib.
the import, and expence abroad
410000 lib. and 20000 lib. fent in
money, to pay the ballance. the mo-
ney raifed one third, and goods to keep
the prices they had before, 225000 1.
fent to Scotland in foreign money, or
goods, or by exchange, would buy
what was fold abroad for 3 90000 lib.
the export, import, and expence a-
broad continuing the fame, Scotland
would be due a ballance of 1 85000 lib.
for, tho' Scots goods were fold under

CONSIDERED. 85

the value,yet other nations would not
fell their goods for lefs than before;
or than they could have in other
places.

It may be alledgcd, we have more
product and manufacture, than is
confumed, or exported ; and felling
cheaper, would occafion a greater de-
mand for our goods abroad.

The product and manufacture
might be much increafed, if we had
money to imploy the people : but,
I'm of opinion we have not any great
quantity of goods, more than what is
confumed or exported, allow felling
cheaper would occafion a greater de-
mand; that the greater demand,
would occafion an increafe in the pro-
duct, and manufacture, to the value
of a 1 00000 lib. and allow that the

%6 MONEY AND TRADE

extraordinary chcapnefs of goods, did
not occafion a greater confumption
in the country: yet, we would be in
the fame condition as before ; 20000 1.
would be ftill due of ballance, and the
improvement would be given to fo-
reigners for nothing, but this im-
provement is imaginary, for tho' the
demand increafed, yet without more
money more people could not be im-
ployed, fo no further improvement
could be made: we would be forced to
retrench near one half of the ordinary
confumption of foreign goods, and
expence abroad; not having money to
pay thegreat ballance would be due.

Some think foreign money being
raifed, would bring in money to Scot-
land.

Tho' the crown were rais'd to 10 s.

CONSIDERED. 87

yet if a ballance is due by Scotland,
the ex^ hange will be above the par,
and, 'tis not to be fuppofed an Englifh
merchant will bring crowns to Scot-
land, when for a 100 payed in at Lon-
don, he can have 1 05 or 6 of the fame
crowns payed him at Edinburgh.

If the ballance of trade was equal,
foreign money raifed, and Scots mo-
ney not raifedin proportion ; foreign
money would be brought in, and a
greater value of Scots money would
be carried out. 'tis the fame lofs to a
country when money is raifed, and
goods do not rife in proportion: if fo-
reigners fend in money to buy goods,
and this money when exported is not
valued fo high as here ; the return in
goods will be fo much lefs,befides the
want of the profit we would have had
on the export of our goods*

88 MONEY AND TRADE

If all import, and foreign expence
were difcharged, Scotland would then
befo much richer, as there was bullion
or money imported: but, if that pro-
hibition be fuppofed, Scotland would
be richer by keeping the money at the
value it has ; becaufe, a greater quan-
tity would be brought in, to buy the
fame quantity of goods.

If we could be fuppofed to be
without any commerce with other
nations, a ioo lib. may be allayed and
raifed to have the fame effect in trade
as a million: but, if a Granger were
fuffered to come to Scotland, he might
purchafe a great part of the land or
goods with a fmall fum. and a rich
man here would make a very fmall
figure abroad.

Money is the meafure by which

CONSIDERED. 8iJ

all goods are valued ; and unlefs goods
rife to the full proportion the money
is raifed, the goods are undervalued,
if the yearly value of Scotland in pro-
duct and manufacture be 2 millions,
at 20 years purchafe 40 millions, the
money a 1 00000 lib. raifing the mo-
ney 20 per cent, makes it pafs for a
120000 lib. fuppofe the goods rife
only 10 per cent, then that a 120000 1.
is equal in Scotland to a 1 10000 1.
of the money before it was raifed ; and
buys the fame quantity of goods, fo,
an addition is made of 20000 lib. to
the tale and of 1 0000 lib. to the value
of Scots or foreign money, compared
with the value of Scots goods : but the
meafure by which goods are valued,
being raifed in the denomination 20
per cent; and the goods rifing only 10
M

90 MONEY AND TRADE

per cent: Scotland is near 4 million,
or one tenth lefs valuable than before,
and any man who fells his eftate, will
receive a tenth lefs filver, or of any
other foreign goods for it, than if he
had fold it before the money was
raifed.

France and Holland are given as
examples of raifing and allaying the
money, in France the money is high-
er in the denomination than in other
countries, but that does not hinder
the money of France to be exported,
when the lued'ore was at 1 2 livres, the
ballance was againft France, exchange
10 per cent above the par: and a no
lued'ores at 12 livres were payed then
at Paris, for a 1 00 lued'ores of the fame
weight and flnenefs at Amfterdam,
and pafTing there for o guilders bank

CONSIDERED. OI

money; fo 10 per cent was got by
exporting money from France, when
the lued'ore was raifed to 14 livres,
that did not make the ballance againft
France lefs ;the exchange continued
the fame, no lued'ores tho' at 14
livres were payed for a bill of a 100
at Amfterdam, and the fame profit
was made by exporting money, if
the exchange happened to be lower,
it was from the ballance of trade due
by France being lefs, and that would
have lowered the exchange whether
the money had been raifed or not. but
the raifing the money, fo far from
bringing the ballance to the French
fide, keeps the ballance againft France:
for, as their goods do not rife to the
full proportion the money is raifed,
fo French goods are fold cheaper,
M 3

92 MONEY AND TRADE

and foreign goods are fold dearer,
which makes the ballance greater, oc-
cafions a greater export of money,
fets idle fo many of the people as that
money employed, lefTens the product
or manufacture, the yearly value of
the country, and the number of the
people.

'Tis thought the Dutch coin lue-
d'ores, and fend them to France,
where they pafs at 14 livres. and,
that guineas were fent from Holland
to England, in the time of the dipt
money ; becaufe they pafr there for
30s. but thefe people are misinformed,
ever fince I have known any thing of
exchange, a lued'ore at Amfterdam
whether new or old, has been of more
value by exchange, than a new luc-
dore at Paris, and in the time of the

CONSIDERED. 93

dipt money, a guinea in Holland was
worth more by exchange, than a
guinea in England, thefe who were
ignorant of the exchange, might buy
up guineas or lued'ores, to carry to
England or France, but they would
have got more by bill, there was a
profit then upon exporting guineas
and hied' ores from England and
France to Holland, the pound Eng-
lifh at that time was given for 8 guil-
ders, or under; and the exchange
from Amfterdam to Paris has been
thefe 8 or 10 years for the mod part,
confiderably above the par on the
Dutch fide. I have known the pound
Englifh at 7 guilders 13 (livers, and
the French crown of 3 livres bought
in Holland for 37 (livers, in London
for 39 pence halfpenny.

94 MONEY AND TRADE

Raifing the money in France is
laying a tax on the people, which
is (boner payed, and thought to be
lefs felt than a tax laid on any other
way. when the King raifes the lued'ore
from 12 livres to 14, they are taken
in at the mint for 1 3 livres, and given
out for 14; fo the King gains a livre
on the lued'ore, and this tax comes
to 20 or 25 million of livres, fome-
times more, according to the quantity
of money in the country, but fo far
from adding to the money, it ftops the
circulation : a part being kept up till
there is occafion to export it to Hol-
land, from whence a return is made
by bill, of a fum of livres equal to the
fame quantity of new lued'ores that
were exported of old ones, and 8 or
10 per cent more, according as the

CONSIDERED. 95

exchange is on the Dutch fide, others
who won't venture to fend the mo-
ney out, keep it till the new money
is cryed down, fo fave a 13th part,
which the King would have got if
they had carried the money to the
mint to be recoined. this tax falls
heavy on the poorer fort of the peo-
ple.

'Tis generally thought the Dutch
money is not worth half what it paffes
for. but it will prove otherwife when
examined, the bank by which moft
payments are made, receive and pay
in bank money, which is better than
theEnglifli, ducatdownsareat3 guil-
ders, and other bank money in pro-
portion ; and I'm informed the cur-
rent money has filver in it to the value
or near, except fome of their fkellings

J>6 MONEY AND TRADE

which are worfe than others: the
making them worfe was not defign'd,
it was an abufe occafioned by too
many towns having power to coin:
which abufe was ftopt fo foon as
known, and that fpecies cryed down
to 5 ftivers and a half.

Some propofe the money may be
raifed, to give the little we have left
a better circulation, and to bring out
hoarded money, the lowering it by
degrees to take place in 3 or 4 months,
will have the fame effect ; and other
good confequences: for, from what
has been faid, page 54 and 55* there
isreafon to think, if the money were
lowered to the Englilh ftandard, ex-
change would be on our fide, and a
ballance due us: providing the export,
the import, and expence abroad con-
tinued as now.

CONSIDERED. 97

There is another argument for
raifingthemoney,which is, that fome
goods don't yield profit enough a-
broad, fo are not exported, if ferges
worth in Scotland a ioo lib. are
worth 120 in Holland, the merchant
won't export them for 20 per cent
profit : but if the money is raifed 20
per cent, and goods keep at the prices
they had before, the fame money that
bought 100 lib. of ferges, buying now
to the value of 120 lib. and thefe
goods being worth in Holland 144 lib:
that addition to the profit by raifing
the money, will occafion the export
of them.

This is the fame as if a merchant

who had a 1 00 different forts of goods,

and was offered 30 per cent profit

upon 90 of them ; but no body of-

N

98 MONEY AND TRADE

fering above 20 per cent profit for the
other 10 forts, fhouldadda quarter to
the meafure by which he meafured
his goods, and fell all the 100 forts
for the fame price he fold them before:
as this merchant would find himfelf
a confiderable lofer by this expedient,
fo will a nation who raifes their mo-
ney.

For the fame reafon, it would be
a great lofs to Scotland if all goods
were allowed to be exported without
duty ;fome ought to be free of duty,
and fome not, according to their value
abroad.

The true and fafe way to encou-
rage the export of fuch goods, as do
not yield great enough profit ; is by a
draw-back, if ferges fent to Holland
give only 20 percent profit, 10 per

CONSIDERED. 99

cent given as a draw-back will encou-
rage their export: thedraw-backgiven
to the merchant is not loft to the
nation, and what is got by the ma-
nufacture or export of the goods, is
gained by the nation.

A draw-back is the beft method
yet known for encouraging trade,
and it may be made appear, that 10
or 1 5000 apply ed that way, will occa-
sion an addition to the export to the
value of a iooooo lib. nor is any part
of that 10 or 15000 lib. loft to the
nation; for, if A. B. and C. Scotfmen
get fuch draw-back, it is the fame
thing to the nation, as if it had not
been given, when draw-backs are paid
out of funds for the fupport of the
government, little money is applyed
that way ; becaufe, fo much is taken
N 2

IOO MONEY AND TRADE

from the prince: but, if there was a
national fund for the encouragement
of trade, that nation might improve
trade, and underfell other nations
that did not follow the fame meafures.
but this is fuppofing there was money
in the country to imploy the people.
Coining the plate were a lofs of
the fafhion, which may be valued
one 6th, and would add little to the
money: the plate at the reftauration
was inconfiderable, having been cal-
led in a little before, fince there may
have been wrought one year with an-
other about 60 ftone weight; of that
a great part has been melted down,
or exported, the remainder won't be
of great value, what plate has been
imported belongs to a few men of
quality, who will fend it out of the

CONSIDERED. IOI

country rather than lofe the fafhion ;
and in that they do a fervice to the
country, providing they don't fpend
it abroad, becaufe wrought plate will
fell for more filver at London, than
it will melt to here.

IfYispropofed the money be al-
layed, and the advantage of the allay
be given to the owners of the plate,
fuppofe the new money with allay be
raifed to double the denomination ;
5fh. of plate with the fafhion worth
6 fh. will giveat the mint i o fh. allay'd
money: but even then the plate will
not be brought in voluntarily , for that
plate fold in England, and the value
brought back by bill, will yield from
II to 12 fh. exchange being above
the par, and 6 pence fuppofed to be

102 MONEY AND TRADE

got for the fafhion of the ounce of
plate.

If itbe necefTary to coin the plate,
fuch plate fhould be allowed to be
exported as can be fold abroad for
more than its weight: fecurity being
given to import money or bullion to
the value.

Some propofea regulation of the
ballance of trade, by retrenching the
confumption of foreign goods, and
expence in England: fo the ballance
being brought to be on our fide, we
may become rich by living within our
yearly value, as we became poor by
Spending beyond it.

Such a regulation will have its diffi-
culties, i. to difcharge all or a great
part of the import, will lelTen confide*
rably the revenue of the crown ; and

CONSIDERED. 103

hermajeftymaynot think good to give
the royal aflent to fuch a regulation,
unlefs an equivalent be given. 2. fuch
a regulation would not be fo ftriclly
kept, but a part of what was ufed to
be imported would be itole in. 3. the
refidence of our princes being in
England, we are under a neceffityof
having a miniftry there: imployments
being at the difpofal of the prince,
and London being a place of more
diverfion than Edinburgh, the gentry
wrill continue to go to London for
places or pleafure.

But allowing the royal afTent
were given to fuch a regulation ; ei-
ther with or without an equivalent;
and the regulation could be fo ftriclly
kept, that nothing were imported con-
trair to that law 5 and allow 20000 lib.

104 MONEY AND TRADE

could be faved of the expencein Eng-
land, fo that the import and expence
abroad mould be 60000 lib. lefs than
laft year: yet there are other difficul-
ties, that I fear will make the regula-
tion ineffectual.

1. Suppofe the ballance laft year
due by us was 20000 lib. the import
and expence abroad leffened 60000 1.
thefe who propofe this regulation
may think a ballance will be due to
us of 40000 lib. but as the bank may
have fupplyed us with 60000 lib.
of notes, more than the money in
bank: and as 20000 lib. is fuppofed
to have been exported laft year: fo
our money being lelTened 80000 lib.
the next year's export maybe fo much
lefs valuable, the want of that money
having fet idle a part of the people

CONSIDERED. IO5

were then imployed: and a greater
ballance be due than laft year, not-
withstanding of the regulation.

2. 40000 lib. firft coft of goods
imported, and 20000 lib. fpent a-
broad, leffened the confumption of
the goods of the country ; and the
export was by fo much greater, as the
confumption of the goods of the
country was leffened. but this regu-
lation occafioning a greater confump-
tion of the goods of the country, the
export will be lefs.

3. Several merchants may have
exported goods, tho' they had not
much profit upon the export of them j
but becaufeofthe profit to be made
upon theimport; which being lefTen'd,
may likevvife leffen the export.

4. If Scotland difcharge or put a

O

lo6 MONEY AND TRADE

very high duty on the goods of other
nations, other nations may difcharge
Scots goods.

Allowing there were no difficul-
ties in regulating the ballance of trade,
and that the fame meafures were fol-
lowed as are followed in Holland ;
we would grow richer,but their riches
would increafein the fame proporti-
on: an d 50 years hence Scotland would
beaspoorasnow, in comparifon with
Holland.

If two countries equal in their
producT, people, &c. the one with
a 1 00000 lib. of money, and living
within its yearly value ; fo that the
firft year a ballance is due of 20000 1.
the fecond year of 25000 lib. and fo
on. the other country with 20 milli-
ons of money, and confuming more

CONSIDERED. I07

than the yearly value; fo that a milli-
on is fent out to pay the ballance,
the fecond year 1200000 lib. and fo
on. this country will be foon poor,
and the other be foon rich :but if that
people who has 20 millions of money,
will retrench in proportion to the o-
ther ; they will be rich and powerful
in comparifon with the other.

Confidering how fmall a fhare
we have of the money of Europe,
and how much trade depends on mo-
ney: it will not be found very practi-
cable to better our condition, but by
an addition to our money, or if it is
practicable without it, it is much more
fo with it.

The bank will add little to the
money ; for as credit is voluntary, it
depends on the quantity of money in
O 2

Ic8 MONEY AND TRADE

the country, and tho' the bank had
never failed, yet it could not have kept
its credit much longer, becanfe, the
quantity of money in Scotland is not
fufficient to give a circulation to fuch
a fum of notes, as will pay the charges
of the bank, and the intereft to the
owners.

'Tis thought the proprietors of
the bank deflgn to apply to the par-
liament for further priviledges: but as
their defign is not yet made publick,
I (hall only fay in general, that if o-
ther priviledges are to be given, then
it is not the fame bank; at leaf! not
on the fame eftablifhment it was: in
either of thefe cafes, every perfon
fhould be allowed to fhare in it.

When a bank is eftablifh'd every
perfon may have a fhare, upon the

CONSIDERED. IO<?

terms of the act of parliament ; and
he that offers firft is preferred, fup-
pofe upon thefettingup of the bank,
A. B. and C. did not fubfcribe to it,
becaufe they thought the eftabliih-
mentnot favourable enough: fo long
as they who did fubfcribe can fupport
the bank upon the terms of the acl: of
parliament, none will pretend to any
fhare in it; unlefs the fubfcribers are
pleafed to fell, but if other priviledges
are given, A. B. and C. as any others
of the country may defirethe books
to be opened, that they be allowed
to fhare in it ; and any other fet of
men who offer the fame fecurity, may
at the fame time be allowed to fet up
a bank with the fame priviledges: fo
every (hire in Scotland will defire
one. and if new priviledges are given

110 MONEY AND TRADE

to this bank, it were a hardship to
refufc the fame to others, who are
able and willing to give the fame
fecurity, efpecially when the nation
ftands in need of more money than
this bank would be allowed to give out.
chap. v.

That any meafures propofed for increafing the filver
money or eflablifhing a credit promifing a payment of
filver money are ineffectual, that filver money has
fallen much from the value it had. that land is of grea-
ter value, that filver may lofe the additional value it
received from being ufed as money.

National power and wealth con-
fiftsin numbers of people, and maga-
zines of home and foreign goods,
thefe depend on trade, and trade de-
pends on money, fo to be powerful
and wealthy in proportion to other
nations, we fhould have money in
proportion with them; for the bell:

CONSIDERED. Ill

laws without money cannot employ
the people, improve the product, or
advance manufacture and trade*

The meafures have been ufed to
preferve and increafe money, or fuch
as are now propofed, are attended
with difficulties ; and tho' the diffi-
culties were removed, are ineffectual,
and not capable to furnifh money fo
as to improve the country, or extend
trade in any proportion to the im-
provements and trade of other na-
tions.

Credit that promifes a payment
of money, cannot well be extended
beyond a certain proportion it ought
to have with the money, and we have
fo little money, that any credit could
be given upon it, would be inconsi-
derable.

112 MONEY AND TRADE

It remains to beconfidered, whe-
ther any other goods than filver, can
be made money with the famefafety
and convenience.

From what has been faid about
the nature of money, chap. i. it is
evident, that any other goods which
have the qualities neceflary in mo-
ney, may be made money equal to
their value, with fafety and conveni-
ence, there was nothing of humour
or fancy in making filver to be mo-
ney ; it was made money, becaufe it
was thought bed qualified for that
ufe.

I fhall endeavour to prove, that an-
other money may be eftablifht, with
all the qualities neceffary in money
in a greater degree than filver ; with
other qualities that filver has not: and

CONSIDERED. II3

preferable for that ufe, tho' filver were
the product of Scotland, and that by
this money, the people may be em-
ployed, the country improved, ma-
nufacture advanced, trade domeftick
and foreign be carried on, and wealth
and power attained.

What I propofe, will I hope be
found fafe, and practicable ; advanta-
geous in general to Scotland, and in
particular to every Scots-man.

But as I offer to prove, that what
I fhall propofe is more qualified for
the ufe of money than filver: fo before
I come to the propofal, I fhall fhew
fome defects in filver money ; and
that it has not, nor does not anfwer
the defign of money.

Money is the meafure by which
goods are yalued, the value by which
P

114 MONEY AND TRADE

goods are exchanged, and in which
contracts are made payable.

Money is not a pledge, as fomc call
it. it's a value payed, or contracted to
be payed, with which 'tis fuppofed
the receiver may, as his occafions re-
quire, buy an equal quantity of the
fame goods he has fold, or other
goods equal in value to them : and that
money is the moft fecure value, either
to receive, to contract for, or to value
goods by ; which is leaft liable to a
change in its value.

Silver money is more uncertain in
its value than other goods, fo lefs
qualified for the ufe of money.

The power the magiitrate has to
alter the money in its denomination
or finenefs, takes away the chief qua-
lity for which filver was made money.

CONSIDERED. 115

in countries where the money is often
changed in the denomination or
finenefs, 'tis more uncertain to con-
tract for money, than it was in the
ftate of barter to contract for goods,
if a 100 ounces of fllver are lent, or
contracted for, and a bond given for
them denominat pounds, payable in
a year: in that time half a crown is
raifed to a crown, and 50 ounces pays
the 100 lent, or contracted for.

Tho' themagiftrate did never alter
the money in its denomination or
finenefs, yet it is more uncertain in
its value than other goods.

Goods of the fame kind and
quality differ in value, from any
change in their quantity, or in the de-
mand for them: in either of thefe
cafes goods are {aid to be dearer, or
P 2

Il6 MONEY AND TRADE

cheaper, being more or lefs valuable,
and equal to a greater or leffer quan-
tity of other goods, or of money.

Silver in bu Hion or money changes
its value, from any change in its
quantity, or in the demand for it: in
either of thefe cafes goods are faid
to be dearer, or cheaper; but 'tis fil-
ver or money is dearer or cheaper,
being more or lefs valuable, and equal
to a greater or leffer quantity of goods*

Perifhable goods as corns, ckc.
increafe or decreafein quantity as the
demand for them increafes or de-
creafes ; fo their value continues e-
qual or near the fame.

More durable goods as mettals,
materials for (hipping, ckc. increafe
in quantity beyond the demand for
them, foare lefs valuable.

CONSIDERED. l\J

Silver or money increafes in quan-
tity by fo much as is imported to Eu-
rope, more than is confumed or ex-
ported, the demand has encreafed,
but not in proportion to the quan-
tity ; for, ift. the fame quantity of
filver or money, won't purchafe the
fame quantity of goods as before.
2dly. 10 per cent was payed for the
ufeofit ; now 'tis to be had at 6, in
Holland at 3 or 4.

An ounce of filver being worth
5 fh. and 2 pence, and a crown
worth 60 pence, unlefs altered by
the prince, makes mod: people in-
fenfibleof any change in the value of
filver or money: but as one year the
boll of barley is fold for 2 crowns,
and the year after for 3 ; this diffe-
rence comes from a change in the

Il8 MONEYANDTRADE

quantity or demand of the barley, or
of the money: and that of the money
will occafion a difference in the price,
as well as that of the barely.

If laftyear a ioo fheep were fold
for a ioo crowns, and the pcrfon
fold them defires this year to buy the
fame number of fheep; tho' the quan-
tity of the fheep, and the demand for
them be the fame as laft year: yet if
themoneyisincreafedinquantity,and
the demand for it not increafed in
proportion, the ioo fheep will be e-
qual in value to more money than the
year before, fo the money is cheaper,
if the quantity of the money, and
the demand for it be the fame as be-
fore ; yet if the fheep are leffer in quan-
tity, or the demand for them grea-
ter: the ico fheep will be equal to a

CONSIDERED. lip

greater quantity of money, fo the
fheep are dearer.

So tho' the magiftrate did never
alter the money, yet 'tis liable to a
change in its value as (liver; from
any change in its quantity, or in the
demand for it: and the receiver is
doubly uncertain whether the mo-
ney he receives or contracts for, will,
when he has occafion, buy him the
fame goods he has fold, or other
goods equal in value to them ; becaufe
of the difference may happen in the
value of the money, or the goods
he is to buy.

And this uncertainty is, tho' both
money and goods were certain in their
quality.

The difference of the prices of
moft goods, from changes in their

120 MONEY AND TRADE

quantity, or in the demand for them>
would be much prevented, if maga-
zines were kept ; but the difference
in their prices from the greater or
lefTer quantity of, or demand for mo-
ney ; cannot be prevented fo long as
filver is the money.

That money is of much lefTer va-
lue than it was ; will appear by the
value goods, land, and money had
200 years ago.

By the afts of the council of E-
dinburgh, it appears, that anno 1495,
the fiars for wheat was 6 fh. and 8
pennies Scots money the boll.

Anno 1520, claret and white
French wines were ordered to be fold
in the taverns at 6 pennies Scots the
pint, and ale at 20 pennies Scots the
gallon.

CONSIDERED. 121

Anno 1526, the milns belonging
to the town were lett for4oomerks
Scots, now they give 13000.

The petty cuftoms atLeith then
lett for 1 I5merks.

Anno 1 532, the load of malt con-
taining 9 firlots, was ordered to be fold
at 32 fh. Scots the load.

Anno 1551, ordered that the beft
mutton bulk be fold for 12 pennies
Scots, the2d. fort for 10 pennies, and
the worft fort for 3 pennies.

A.nno 1553, the 9 firlots of malt
old meafure, with the charity, is or-
dered to be fold for 36 fh. Scots, the
landwart bread to weigh 40 ounces,
and thetownbread 36 ounces the 4
penny or plack loaf.

Anno 1555, the bakers are orde-
red for each boll of wheat, to deliver

122 MONEY AND TRADE

7fcore loafs, at 16 ounces the loaf.

By an act of the 5th parliament of
Queen Mary, anno 1551. 'tis ordain-
ed, that wines imported upon the eaft
and north coafr, fhould not be fold
dearer than 20 lib. Scots the tun of
Bourdeaux wine, and 16 lib. the tun
of Rochel wine, the pint of Bour-
deaux wine 10 pennies, and the pint
of Rochel wine 8 pennies, and that
wine imported upon the weft coaft,
be fold no dearer than 16 lib. Scots
the tun of Bourdeaux wine, and 12
or 13 lib. the tun of Rochel wine.
8 pennies the pint of Bourdeaux wine,
and 6 pennies the pint of Rochel
wine.

So that what 5 lib. bought 200
years ago, will not be bought now
for a 1 00 lib. nor were goods in great-

CONSIDERED. 123

er plenty, or of lefs value than now:
on the contrail-, as thefe acls were
made to regulat the prices of goods,
'tis reafonable to think they were in
leffer quantity than now, proportion-
ed to the demand, fo of more value,
but money having increafed in quan-
tity, more than in demand, and ha-
ving been altered by the prince ; is
fallen in value: and a 100 lib. now
is not worth what 5 lib. was worth
before.

Land may be computed to have
been improved in 200 years, that
what pays now two bolls the acre,
payed then but one boll: which may
be known from old rentals.

Money gave then 10 per cent in-
tereft, and as 384 acres, rented at a
boll the acre, victual at 8 fh. and 4 d*

0.2

124 MONEY AND TRADE

the chalder; fo the property of thefe
acres was equal to, or worth a ioo 1.
for a ioo lib. gave 10 lib. intereft,
and the 384 acres payed only fuch a
quantity of victual, as was fold for
10 lib. but as land ( being preferable
to money for many reafons) is valu-
ed now at 20 years purchafe, tho'
money is at 6 per cent: fo that land
then may have been valued 14 years
purchafe or 140 lib.

As the quantity of money has in-
creafed fince that time, much more
than the demand for it; and as the
fame quantity of filver has received
a higher denomination, fo of confe-
quence money is of leifer value: a
lefler intereft is given for it: A greater
quantity of it is given for the fame
quantity of goods, and the land is
worth more years purchafe.

CONSIDERED. I2J

The value of fuch land now, the
acre rented at 2 bolls, visual at 8 lib.
6 ih. and 6 pence, money at 6 percent,
fo land at 20 years purchafe, would
be 8000 lib. by this computation
money is only worth the 20th part
of goods, and the 57th part of land,
it was worth 200 years ago. part of
this difference is from the improve-
ment made on land, and the greater
demand for land, the quantity being
the fame, whereby its value is greater:
the reft: of the difference is, from the
money being more encreafed in
quantity, than in demand, whereby
its value is leffer, and its ufe lower : as
likewife from its being altered in the
denomination.

There was then a greater quantity
of filver in the fame number of pence

126 MONEY AND TRADE

than there is now: which appears by
feveral acls of parliament made about
that time.

Anno 1475, in the 8 par. of K.
James the 3. the ounce of filverwas
ordered to be fold for 12 fh. Scots,
and 12 groats was made of the ounce
of filver.

The 3d. of November 1554, by
an acl of the town-council of Edin-
burgh, the ounce of filver was orde-
red to be fold at 18 fh. and 8 pennies
Scots; but thefe acts do not menti-
on the finenefs the filver was of. fup-
pofe the fame number of pence had
twice or 4 times the value of filver in
them that they have now: then filver
is only fallen to one tenth, or one
fifth of the value it had to goods ; and
to one 28th, or one 14 of the value

CONSIDERED. 1 27

It had to land, but ftill money is fal-
len to one 20th of the value it had to
goods, and to one 57th of the value it
had to land.

The manner of lending money in
France, and I fuppofe in other Roman
Catholick countries j is by way of
perpetual intereft, redeemable by the
debitor, and which the creditor may
difpone or affign, but can never de-
mand the principal, and it is ufury
by law to take any intereft for money,
if the creditor has power to call for
the principal, tho' the term of pay-
ment be many years after the money
is lent, fuppofe the manner of lend-
ing in Scotland was the fame 200 years
ago, and that A. B. having 768 acres
of land, rented at a boll of victual
the acre, the yearly rent 48 chalder, at

128 MONEY AND TRADE

5 lib. Scots the chalder, 20 lib. fieri.
C. D. worth a 100 lib. in money, to
have lent it to A. B. and intered be-
ing at 1 o per cent, to have received
an annual intereft of 1 o lib. which he
left to his fon, and thought he had
provided fufficiently for him, 10 lib.
being equal to, or worth 24 chalder of
victual, but intereft being lowered to

6 per cent, money being raifed in the
denomination, and of lefs value by its
greater quantity : the 6 lib. now paid
for the annual intereft of that 100 1.
is not worth one chalder of victual,
and 384 acres, or the half of A. B's
land 200 years ago only equal to a
100, or a 140 lib ; is now worth 57
times that fum, the rental fuppofed to
be doubled, and its value at 20 years
purchafe.

CONSIDERED. 129

In France it has been obferved,
that about 200 years ago, the fame
land was in 30 years worth double the
money it was worth before, fo land
worth a 100 lib. anno 1500, was
worth 200 lib. anno 1530. 400 lib.
anno 1560. and [o on, till within
thefe 50 or 60 years it has continued
near the fame value.

In England 20 times the quantity
of money is given for goods, that was
given 200 years ago. in thefe coun-
tries 'tis thought goods have rofe; but
goods have kept their value, 'tis mo-
ney has fallen.

Moil goods have increafed in
quantity, equal or near as the demand
for them has increafed ; and are at or
near the value they had 20oyearsago.
land is more valuable, by improve-

R

I30 MONEY AND TRADE

ment producing to a greater value,
and the demand incrcafing, the quan-
tity being the fame, filver and mo-
ney are of lefler value, being more
increafed in quantity, than in de-
mand. *

Goods will continue equal in
quantity as they are now to the de-
mand, or won't differ much: for the
increafe of mod goods depends on
the demand, if the quantity of oats
be greater than the demand for con-
fumption and magazines, what is o-
ver is a drug, fo that product will be
leffened, and the land imployed to
fome other uferif by a fcarcity the
quantity be leffer than the demand,
that demand will be fupplyed from
magazines of former years ; or if the
magazines are not fufficient to anfwer

CONSIDERED. 131

the demand, that fcarcity cannot well
be fuppofed to laft above a year or
two.

Land will continue to rife in value,
being yet capable of improvement ;
and as the demand increafes, for the
quantity will be the fame.

Silver will continue to fall in value,
as it increafes in quantity, the demand
not increafing in proportion ; for the
increafe does not depend on the de-
mand, mofl: people won't allow them-
felves to think that filver is cheaper
or lefs valuable, tho' it appears plain-
ly, by comparing what quantity of
goods fuch a weight of fine filver
bought 200 years ago, and what
quantity of the fame goods it will
buy now. if a piece of wine in
France is equal in value to 20 bolls
R 2

132 MONEY AND TRADE

of oats there, that quantity of oats
can never be worth more or lefs wine ;
fo long as the quality, quantity and
demand of both continues the fame:
but any difproportioned change in
their quality, quantity or demand, will
make the fame quantity of the one,
be equal to a greater quantity of the
other, fo if a piece of wine in France,
is equal to or worth 40 crowns there ;
it will always continue fo, unlefs fome
difproportioned change happen in the
quantity, quality, or demand of the
wine, or of the monev.

The reafon is plain, why filver
hasencreafed more in quantity than
in demand: the Spaniards bring as
great quantities into Europe as they
can get wrought out of the mines,
for it is dill valued tho' not fo high.

CONSIDERED. 133

and tho' none of it come into Britain,
yet it will be of lefs value in Britain,
as it is in greater quantity in Europe.
It may be objected that the de-
mand for filver is now greater than
the quantity, it is anfwered: tho' the
demand is greater than the quantity;
yet it has not increafed in proportion
with the quantity. 200 years ago
money or filver was at 10 per cent,
now from 6 to 3. if the demand had
increafed as much as the quantity,
money would give 10 p. cent as then,
and be equal to the fame quantity of
victual, or other goods that have
kept their value, if A. B. having a
1000 lib. to lend, fhould offer it at
10 per. cent, intereit, and defired
land of 240 chalder of victual rent
for his fecurity, as was ufed to be

134 MONEY AND TRADE

given 200 years ago: tho' no law
regulate the intereft of money, A.B.
would find no borrowers on thcfe
conditions ; becaufe filver having
increafed more in quantity than in
demand, and the denomination being
altered, money is of lefs value, and is
to be had on eafier terms, if the de-
mand had encreafed in the fame pro-
portion with the quantity, and the
money had not been raifed, the fame
intereft would be given now as then,
and the fame quantity of victual to
pay the intereft ; for money keeping
its value, 8 fh. and 4 pence would be
equal to a chalder of victual, as it was
then.

If 2000 lib. was laid out on plate
20oyears ago, it is thought the lofs
on the plate was only the fafhion,

CONSIDERED. I35

and the intereft ; but if the 2000 lib.
had been laid out on land, the rent
of that land would be more than the
value of fuch plate.

Tho' money or filver is fo much
fallen from the value it had, yet it's
given as a value for one half, or two
thirds more tHan its value as filver,
abftraci from its ufe as money.

Suppofe filver to be no more ufed
as money in Europe, its quantity
would be the fame,and the demand for
it much leffer ; which might lower
it 2 thirds or more j for befides that
the demand would be lefs, its ufes as
plate, &c. are not near fo neceflary,
as that of money.

Goods given as a value, ought for
their other ufes to be valuable, equal
to what they are given for. filver was

I36 MONEY AND TRADE

bartered as it was valued for its ufes
as a metal, and was at firft given as
money, according to the value it had
in barter, filver has acquired an ad-
ditional value fince, that additional
ufe it was applyed to occafioning a
greater demand for it ; which value
people have not been fenfible of, the
greater quantity making it fall more:
but it has kept it from falling fo low
it would have fallen, if it had not
been ufed as money, and the fame
quantity had come into Europe.

'Tis uncertain how long filver
may keep that additional value: if
England fet up a money of another
kind, filver will not fall to one third,
becaufe ufed in other places as money;
but the leffer demand, befides the
ordinary fall from the greater quanti-

CONSIDERED. 137

ty coming intoEnrope, would occa-
fion an extraordinary fall perhaps of
10 per cent: if the new money then
in England did not encreafe beyond
the demand for it, it would keep its
value, and be equal to fo much more
filver at home or abroad than it was
coined for ; as filver would be of lefs
value, from the ordinary and extraor-
dinary fall.

If England changed their money,
other countries may do the fame, if
Holland alone kept to filver money,
the price of filver may be fuppofed to
fall immediately 50 percent, from the
lelfer demand for it as money, and a
100 lib. in Holland be worth no more
than 50 lib. new money in England,
whether fent in fpecie or remitted by
exchange ; and as more filver camein-
S

I38 MONEY AND TRADE

to Europe, it would fall yet lower,
becaufe ofits greater quantity.

It may be obje&ed, that in Scot-
land the quantity of goods are pro-
portioned to the demand as they have
been fome years ago ; and money
fcarcer, the demand for it the fame
or greater, fo if goods and money
are higher or lower in value, from
their greater or lefTer quantity in pro-
portion to the demand for them ;
money fhouldby its great fcarcity be
more valuable, and equal to a greater
quantity of goods, yet goods differ
little in price, from what they were
when money was in greater quantity.

To this it's anfwered, the value
of goods or money differs, as the
quantity of them or demand for them
changes in Europe; not as they

CONSIDERED. 139

change in any particular country,
goods in Scotland are at or near the
fame value with goods in England,
being near the fame in quantity in
proportion to the demand as there :
money in Scotland is not above one
40th part of the money in England,
proportioned to the people, land, or
product; nor above a 10th part pro-
portioned to the demand, if Scotland
was incapable of any commerce
with other countries, and in the ftate
it is now, money here would buy 10
times the quantity of goods it does in
England, or more : but as Scotland
has commerce with other countries,
tho' money were much fcarcer than
now, or in much greater quantity
than in England ; if there were but
10000 lib. in Scotland, or a million,
S 2

I40 MONEY AND TRADE

the value of goods would not differ
above 30 per cent, from what they
were abroad, becaufe for that diffe-
rence goods may be exported, or im-
ported, prohibitions may raife the
difference higher.

Brittannia languens and others
on trade and money, are of opinion
that goods in any country fall in value,
as money in that particular country
grows fcarcer. that, if there was no
more than 500 lib. in England, the
yearly rent of England would not
exceed 500 lib. and an ox would be
fold for a penny, which opinion is
wrong, for as the ox might be expor-
ted to Holland, it would give a price
in England equal or near to that it
would give in Holland : if money
were fuppofed to be equally fcarce in

CONSIDERED, 141

Holland, and other places as in Eng-
land, the ox might give no more than
a penny, but that penny would have
a value then equal to 5 lib. now;
becaufe it would purchafe the fame
quantity of goods in England or
other places, that 5 lib. does now.

The fame anfwer may be given to
thefe who think an addition to the
money of any particular country
would undervalue it fo, that the fame
quantity of goods would coit double
the money as before.

If the money and credit current
in England be 15 millions, Scotland
reckoned as 1 to 10, the money in
Scotland encreafed to a million and a
half, the demand in proportion to
the demand in England ; that additi-
on to the money of Scotland, would

I42 MONEY AND TRADE

not make money of lefs value here,
than it is now in England, goods
in Scotland would fell as they fell in
England, the product of the country
would perhaps be 10 or 20 per cent
dearer, to bring it equal to what it
fells in England ; but all forts of ma-
nufacture would be cheaper, becaufe
in greater quantity: and all goods im-
ported would be cheaper, money be-
ing eafier borrowed, merchants would
deal for a greater value, and men of
eftates would be capacitate to trade,
and able to fell at lefs profit, nor
would land rife higher than in Eng-
land, the buyer having in his choice
to buy elfewhere ; the better fecurity
of a regifter may be fuppofed to add
a year's purchafe or two to the value.
If the money of any particular

CONSIDERED, I43

country fhould encreafe beyond the
proportion that country bears to Eu-
rope ; it would undervalue money
there, or, according to the way of
fpeaking, it would raife goods: but
as money would be undervalued every
where the fame, or near to what it
were there ; it would be of great ad-
vantage to that country, tho' thereby
money were lefs valuable: for that
country would have the whole benefit
f the greater quantity, and only bear
a (hare of the leffer value, according
to the proportion its money had to
the money of Europe, when the
Spaniards bring money or bullion in-
to Europe, they leffen its value, but
gain by bringing it ; becaufe they have
the whole benefit of the greater quan-
tity, and only bear a fliare of thelef-
fer value.

144 MONEY AND TRADE

What has been faid, proves, ift.
that filver money is an uncertain va-
lue ; becaufe lyable to be altered in
the finenefs or denomination by the
the prince. A crown has no more
filver in it than half a crown or 15
pence had a 150 or 200 years ago.

2dly. That as filver it has fallen
from the value it had, the fame quan-
tity not being worth thejthonoth
part of what it was worth then.
A moneyed man then worth a
1000 lib. was richer at that time than
a landed man of 240 chalder of victual
rent: but a man of fuch a money
eftate, would not now be worth one
50th part of fuch a land eftate.

3<Jly, That tho' fallen fo much,
yet it is given as money or fold as bul-
lion, for much more than its value as

CONSIDERED. I45

a metal ; to which it will be reduced,
fo foon as another money is fet up.

Confidering the prefent ftate of
Europe, France and Spain being ma-
ilers of the mines, the other unions
fcem to be under a neceflity of fetting
up another money, the only reafon can
be given why it has not yet been done,
is, that the nature of money has not
been rightly underflood : or they
would not have continued buying fil-
ver from Spain above its value as a me-
tal, when they had a more valuable
money of their own; and every way
more fitted for that ufe.

The receiver of filver can have no
great hopes that the value of it will be
greater; for 'tis not to be fuppofed it
will be apply'd to any other ufes, than
it is now apply'd to, whereby the de-
T

I46 MONEY AND TRADE

mand for it may be encreas'd : or that
the quantity exported and confum'd,
will be greater than the quantity im-
ported.

Tho' it be fcarce in any particular
country, yet the money'd men will
have no great benefit by fuch fcarci-
ty, as has been mown : for unlefs the
fcarcity is the fame in all places with
which that country trades, money
will not be valued much higher there
than in other countries.

If it is alledged the mines in the
Weft Indies may fail, 'tis the intereft
of the Spaniards to give out that their
mines begin to fail, to keep up the
price of filver ; but if that were true,
France ought not to have engaged her
felf in a war, when by the partition
treaty fhe could have got any other

CONSIDERED. I47

parts of that monarchy that are va-
luable, allowing the mines do fail, we
ought the rather to provide ourfelves
with another money.

CHAP. VI.

The propofal given in to Parliament by Dr. H. C. ex-
amined.

I did not intend to have faid any
thing about the Dr's propofal, that
affair having been referr'd to a com-
mittee, who are to make their report,
but feveral people who are of opinion
that the Dr's propofal is not practi-
cable, being againft what I am to
propofe, becaufe they think 'tis the
fame with his in fome other drefs : I
thought it needful to give a fhort ac-
count of the Dr's propofal, and in
what I differ from him.

His propofal is to give out notes
T 2

I48 MONEY AND TRADE

upon land, to becancelfd by yearly
payments of about 2 and a quarter
per cent, for 45 years, and that thefe
notes be current as filver money, to
the value they are coin'd for.

If notes given out after that man-
ner, were equal in value to filver mo-
ney ; then every landed man in Scot-
land, would defire a fhare of this great
and certain advantage: and I don't
fee how it is practicable to give every
landed man a fhare.

Suppofing it practicable, 45 years
purchafe in thefe notes, will not be of
fomuch value, as 20 years purchafe
of filver money.

No anticipation is equal to what
already is. a years rent now is worth
1 5 years rent 50 years hence, becaufe
that money let out at intereft, by that

CONSIDERED. 149

time will produce fo much, and tho'
the parliament would force thefc
notes, yet they would not have cur-
rency, any more than if the govern-
ment coin'd pieces of gold equal in
weight and finenefs, with a guinea,
and ordered them to pafs for 5 lib.

Thefe bills are propos'd to be re-
pay'd and cancell'd in a term of years,
without paying any intereft, but only
fomuch as would defray the charges
of the office, which would not be
above one half per cent.

There would then be many len-
ders, but few if any borrowers, except
from the land bank : for as 'tis the lan-
ded man borrows of the money'd man,
he would fatisfie his creditor,and have
bills to lend, the money'd man would
likewife have of thefe bills to lend,

I3'C MONEY AND TRADE

but there would be no borrowers \ or
if any defired to borrow, they would
have thefe bills at a very low ufe. fup-
pofe at 2 per cent, then thefe bills
would be confiderably lefs valuable
than filver.

Any thing that is propos'd to have
a currency as money, and is given for
a leffer intereft than filver money, will
be of lefs value.

It is not to be fuppos'd any perfon
will lend filver money at 2 per cent,
when they can have 6 per cent in
England, fo a 100 lib. filver money,
will yield as much as 300 lib. of thefe
bills would : and 100 lib. in filver, will
be equal to 300 lib. in bills, the 6 lib.
the ioo lib. of filver yields, being fil-
ver, and the 6 lib. the 300 of bills
yields, being payed in thefe bills : and

CONSIDERED. 151

I lib. filver, being worth 3 lib. in bills ;
fo the 6 lib. intereftof the 100 lib. in
filver, would be equal to 1 8 lib. or the
intereft of 900 lib. in bills.

And tho' they were given out to be
repay'd in 20 years, at 5 per cent for
that time ; or in 10 years, at 10 per
cent : they would not be equally va-
luable with filver. the difference would
not be fo great, as when given out for
45 years.

The advantage the nation would
have by the Dr's propofal is ; that tho'
thefe notes fell under the value of fil-
ver money, and 500 lib. in notes were
only equal to a 100 lib. in filver; yet
the nation would have the fame ad-
vantage by that 500 lib. in notes, as
if an addition of a 100 lib. had been
made to the filver mone

IJ2 MONEY AND TRADE

So far as thefe bills fell under the va-
lue of the filver money, fo far would
exchange with other countries be
rais'd. and if goods did not keep their
price, ( i. e. ) if they did not fell for a
greater quantity of thefe bills, equal
to the difference betwixt them and fil-
ver : goods exported would be under-
valued, and goods imported would
be overvalued, as has been explain'd
page 43 and 44 about exchange.

The landed-man would have no ad-
vantage by this propofal, unlefs he
owed debt: for tho' he received 50 lib.
of thefe bills, for the fame quantity of
victual he wras in ufe to receive, 10 lib.
filver money ; yet that 50 lib. would
only be equal in value to 10 lib. of fil-
ver, and purchafe only the fame quan-
tity of home or foreign goods.

CONSIDERED. I53

The landed-man who had his rent
pay'd him in money, would beagreat
lofer. for by as much as thefe bills
were under the value of filver, he
would receive fo much lefs than be-
fore.

The landed-man who owed debt,
would pay his debt with a lefs value
than was contracted for : but the cre-
ditor would lofe what the debtor
gain'd.

Dr. C. feems to be offended at my
meddling in this affair, having, as
he fays, borrow'd what I know of
this fubject from him. Two perfons
may project the fame thing, but fo
far as I can judge, what I am to pro-
pofeis different from his, and what I
had form'd a fchemeoffeveral years
before I had feen any of his papers :
U

154 MONEY AND TRADE

which I can prove,if that were neceffa-
ry,by perfonsof worth I then fhow'd
it to. I have not, to my knowledge,
borrowed any thing from Dr. C. land
indeed is the value upon which he
founds his propofal.and'tis upon land
that I found mine:if for that reafon I
haveincroacheduponhispropofaljthe
bank of Scotland may be faid to have
done the fame: there were banks in
Europe long before the Dr's propofal,
and books have been writ on the fub-
je<ft before and fince. the foundation
I go upon has been known [o long as
money has been lent on land, and fo
long as an heretable bond has been
equal to a quantity of land, whether
the ftruclnre he or I have built upon
that foundation be moft fafe, advanta-

CONSIDERED. 155

gcous and practicable, the parliament
can beft judge.

Dr. C's propofal is by anticipati-
on, to make land worth 50 or a 100
years purchafe; and maintains that a
100 lib to be payed yearly for 10, 50,
or a 1 00 y ears,is a valuable pledge for a
1 000, 5000, or a 1 0000 1. of bills : and
that thefe bills will be equal to filver-
money. if he can fatisfie the nation
that his propofal is practicable, he does
a very great fervice, and gives a certain
advantage to the landed-man,without
wronging the money 'd-man. I have
fhown the reafons why I think the
propofal is not practicable ; and that
notwithftanding any aft of parliament
made to force thefe bills, they would
fall much under the value of filver. but
allowing they were at firft equal to fil-
U 2

I56 MONEY AND TRADE

ver, it is next to impoffible that two
different fpecies of money, fhall con-
tinue equal in value to one another.

Every thing receives a value from
its ufe, and the value is rated, accor-
ding to its quality, quantity and de-
mand, tho' goods of different kinds
are equal in value now, yet they will
change their value, from any unequal
change in their quality, quantity, or
demand.

And as he leaves it to choice of
the debtor, to pay in filver-money or
bills ; he confines the value of the bills,
to the value of the filver-money, but
cannot confine the value of the filver-
money to the value of the bills : fo
that thefe bills muft fall in value as fil-
ver-money falls, and may fall lower :
CJver may rife above the value of thefe

CONSIDERED. I57

bills, but thefe bills cannot rife above
the value of filver.

What 1 (hall propofe, is to make
money of land equal to its value; and
that money to be equal in value to fil-
ver-money ; and not lyable to fall in
value as filver-money falls.

Any goods that have the qualities
neceflary in money, may be made mo-
ney equal to their value. 5 ounces of
gold is equal in value to 20 lib. and
may be made money to that value, an
acre of land rented at 2 bolls of
victual, the victual at 8 lib. and land at
20 years purchafe, is equal to 20 lib.
and may be made money equal to that
value, for it, has all the qualities ne-
ceflary in money, but that acre of land
cannot be coin'd to the value of 50
lib. no more than the 5 ounces of gold.

IjS MONEY AND TRADE

and tho' the5 ounces of gold,the 20 L
filver-money and the acre of land, be
now equal in value; yet they cannot
well continue fo : for as I have fhown
already, any difproportion'd change
in the quality, quantity, or in the de-
mand of either of them,will make the
fame quantity of the one, equal to a
greater or leffer quantity of the o-
thers. land is what in all appearance
will keep its value beft, it may rife in
value, but cannot well fall :gold or fil-
ver are lyable to many accidents,
whereby their value may lefTen ; but
cannot well rife in value.

chap. VII.

The propofal with reafins-for it.

To fupply the nation with money,
it is humbly propos'd, that 40 com-
miffioners be appointed by parlia-

CONSIDERED. 150

inent, anfwerable to parliament for
their adminiftration, and the adminis-
tration of the officers under them : the
nomination of thefe officers being left
to the commiffioners.

That the commiffioners have pow-
er to coin notes: which notes to be re-
ceived inpayments, where offer'd.

That a committee of parliament be
appointed to infpect the management,
and that none of the commiffioners
be members.

That the commiffion and commit-
tee meet twice a year at Whifunday
and Martinmafs 5 their meetings, to
begin 1 o days before, and to continue
10 days after each term.

There are three ways humbly of-
fer'd to the parliament, for giving out

l6o MONEY AND TRADE

thefe notes : they in their wifdom may
determine which will be moft fafe.

i . To authorize the commiflion to
lend notes on land fecurity, the debt
not exceeding one half, or two thirds
of the value : and at the ordinary in-
tereft.

2. To give out the full price of land,
as it is valued, 20 years purchafe more
or lefs, according to what it would
have given in filver-money, the com-
miflion entring into poffeffion of fuch
lands, by wadfet granted to the com-
miflion or afllgneys j and redeemable
betwixt and the expiring of a term of
years.

3. To give the full price of land,
upon fale made of fuch lands, and dis-
poned to the commiflion or afligneys
irredeemably.

CONSIDERED. l6l

That any perfon fliall have fuch
bonds, wadfets, or eflates afligned or
difpon'd to them, upon paying in the
value to the commiffion.

That the commiffion don't receive
other money than thefe notes.

That no perfon who has contrac-
ted for thefe notes, fhall be obliged
to receive filver or metal money.

That the commiffion have not
power to coin more than 50000 lib. at
a time, and that no more be coin'd fo
long as there is 25000 lib. remaining
in the office.

That for a year and a half the com-
miffion be limited to a certain fum, af-
ter that time to have power to coin
what funis are demanded : unlefs re-
flected by enfuing parliaments.

That thefe who defire to have mo-

x

l6z MONEY AND TRADE

ney from the commiffion, give in a
note to the lawyers for the commiffi-
on, a month before the term, of what
funis they want, with therightsof the
lands they offer in pledge: and that
thefe who have notes to pay in to the
commiffion, give warning 10 days be-
fore the term.

That the (tateof the commiffion,
thefum of notes coin'd, the debt and
credit, with the highcft number of
the different notes, be publifh'd every
term.

That any perfon who fhall difco-
ver2 notes of the fame number, or of
a higher number than thefe publifh'd,
fhall have a ioo lib. reward.

Thattheunder-officersbeintrufted
with the fum of 20000 lib. to change
notes with; and that they attend the
whole year.

CONSIDERED. 163

That any member of parliament
may infpecl the (late of the commifli-
on.

That no notes be coined, money
lent, or rights affigned by the commif-
fion, but at the terms of Whitfunday
and Martinmafs : and in prefence of at
leaft 20 commiffioners, and one third
of the committee.

That the revenue of the commif-
fion, over what pays the charges, and
what part the parliament thinks
needful to make good any loffes may
happen to the commiilion, be apply-
ed by way of drawback, for encou-
raging the export, and manufacture
of the nation.

That paper-money do not rife
more than 10 per cent above filver-
money ; fo that he who contracts to
X 2

I<$4 MONEY AND TRADE

pay in paper, may know what he is
to pay in cafe he cannot get paper-
money.

The paliament may enter into a
refolve, that the next feflions of this
or the next enfuing parliament, the
frate of the commiffion be taken into
confideration, preferable to all other
bufinefs: and if found hurtful to the
country, the parliament may dif-
charge any more notes to be given
Out, and order what notes are then
out to be called in.

That after 3 months from the
date of the aft, Scots and foreign mo-
ney be reduced to the Englifh ftand-
ard. the Englifti crown to 60 pence,
and the other money in proportion
to its value of filver. the 40 pence to
38 pence, the new mark to 13 pence

CONSIDERED. 165

J, the old mark to its weight, the du-
catdowns to 68 pence, dollars to
their weight, guineas not topafs 22 fh.

That after 4 months no Scots mo-
ney, (except what fhall be coined af-
ter the act) nor any foreign money
except the Englifh money, be receiv-
ed in any payments, or be fold as bul-
lion but at the mint.

That for what old money or bul-
lion is brought to the mint, the mint
return to the full value in new mo-
ney of 12 pence, 6 pence, and 3
pence pieces ; of eleven deniers fine,
the 12 pence of 3 drops 3 grains
weight, the other pieces to weigh in
proportion : the expence of coinage
to be payed out of the funds appro-
priated to that ufe.

That for 3 months, after the acl,

J 66 MONEY AND TRADE

the new money pafs for 13 pence,
6 pence half-penny, and 3 pence*.

That after 3 months, bullion and
wrought plate be of eleven deniers
fine, and 5 fh. and 2 d. the ounce of
filver, gold not to pafs 4 lib.

The paper-money propofed will
be equal in value to filver, for it will
have a value of land pledg'd equal to
the fame fum of filver-money that
it is given out for. if any lofles fhould
happen, one 4th of the revenue of
the commiflion, will in all appea-
rance be more than fufficient to make
them good.

This paper-money will not fall in
value as filver-money has fallen, or
may fall : goods or money fall in va-
lue, if the increafein quantity, or if
the demand leffens. but the commit-

CONSIDERED. I 67

Hon giving out what fums are demand-
ed, and taking back what fums are
offered to be returned ; this paper-
money will be keep its value, and
there wrill always be as much money
as there is occafion, or imployment
for, and no more.

If a contract for paper-money could
be fatisfied by paying the fame quan-
tity of filver money, then that paper-
money could not rife above the value
of filver, and would fall with it. but
as the paper money is a different
fpecies from filver, fo it will not be
lyable to any of the changes filver
money is lyable to.

Tho' the parliament could give
filver money to the people, in as
great quantity as there were occafi-
on: the parliament could not juftly

l68 MONEY AND TRADE

know what fum would ferve the
country, for the demand changes, if
the quantity of money is lefs than
the demand, the landed man is wron-
ged : for a ioo lib. then being more
valuable, will buy a greater quantity
of the landed mans goods, if the
quantity of money is greater than the
demand, the money'd-man is wron-
ged, for a ioolib. then is not fo va-
luable, fo will not buy the fame quan-
tity of goods a i oo lib. bought before.
If the commiffion do not give out
money when it is demanded, where
good fecurity is offer'd ; 'tis a hard-
ship on theperfon who is refufed, and
a lofs to the country : for few if any
borrow money to keep by them ; and
if employ 'd it brings a profit to the
nation, tho' the employer lofes.

CONSIDERED. I 69

If the commiilion did not take back
what funis were offer'd to be return'd,
it were a hardfhip on the money'd
man, who has a funi payed him, and
does not know how to employ it ; and
the quantity being greater than the de-
mand for it, would fall in value.

After the method propos'd, the
quantity being always equal to the de-
mand for it, it will keep its value, and
buy the fame quantity of goods 50
years hence, as now: unlefs the goods
alter in their value, from any change
in their quantity, or in the demand for
them.

Suppofe this comrniffion had been
eftablifht 200 years ago, land then at
14 years purchafe, money at 10 per
cent, viclualat 8fhil. and 4 pence the
chalder, and paper money to have been
Y

I70 MONEY AND TRADE

given out upon land ; 8 fliil. and 4
pence of that paper money, would
now have been equal to a chalder of
victual, and to 8 lib. 6 fh. and 4 pence
filver-money : becaufe filver-money
having increas'd in quantity, more
than the demand; and having been al-
tered in the denomination, has fallen
to one 20th of the value it had then,
nor would the landed man have re-
ceiv'd lefs for his victual, than now;
for that paper-money would have
bought him 20 times the quantity of
goods, filver-money will buy.

Land has amore certain value than
other goods, for it does not encreafe
in quantity, all other goods may. the
ufesofgoodsmaybedifcharged, or by
cuftom be taken from them, and given
to other goods : the ufe of bread may

CONSIDERED. I7I

be taken from oats, and wholly given
to wheat: the ufe of money may be
taken from filver, and given to land:
the ufe of plate, and the other ufes of
filver as a metal, may be taken from
filver, and given to fome other metal,
. or fome mixture that may be more fit-
ted for thefe ufes. in any of thefe cafes,
thefe goods lofe a part of their value,
proportionate the ufes are taken from
them : but land cannot lofe any of its
ufes. for as every thing is produced by
land, fo the land muft keep its value,
becaufe it can be turn'd to produce
the goods that are in ufe. if wheat is
more us'd, and oats lefs, as the land
can produce both, it will be turn'd to
produce what is mod: ufed, becaufe
moil: valuable.
This money will not receive any ad-
Y 2

172 MONEY AND TRADE

ditional value from being ufed as mo-
ney, fo the receiver will be certain he
can be no lofer, tho' after a term of
years the ufe of money is taken from
it. the land will receive an additional
value, from being ufed as the pledge
upon which the money is iffued ;
and that additional value would be
greater than what filver received :be-
caufe, tho' land be ufed as the pledge
to ilfue out money upon, yet none of
its other ufes would be taken from it:
filver cannot be us'd as money and
plate at the fame time, but as land is
in greater quantity than there will be
occafion for to give out money upon ;
fo the additional value it receives, will
not be near fo great as that filver-mo-
neyhasreceiv'd.

Suppofe the additional value land

CONSIDERED. I73

received were one 4th, land now at 20
years purchafe, would then be at 25
years purchafe. if the parliament call'd
in the paper money, he who had pa-
per money could be no lofer by it,
tho' the land loft the additional value ;
for no more of it is given out than the
value of the land abftraft from its ufe
as money, whereas if filver was no
more ufed as money, he who had fil-
ver, would lofe a half, or 2 thirds; fil-
ver falling then to its value as a metal.
So that this paper money propos'd,
having a better value than filver ; and
receiving no addition to its value, from
being ufed as money ; and not being
lyable to any change in its value,
the quantity and demand encreafing
anddecreafing together : it is fo far
more qualified to be the meafure by

174 MONEY AND TRADE

which goods are valued, the value by
which goods are exchanged, and in
which contracts are made payable.

The other qualities neceflary in
money, are,

i.Eafy of delivery.

2. Of the fame value in one place to
what it is in another.

3. To be kept without lofs or ex-
pence.

4. To be divided without lofs.

5. To be capable of a (lamp.
Paper money has thefe qualities in

a greater degree than filver.

1. It is eafier of delivery: 500 lib.
in paper may be payed in lefs time,
than 5 lib. in filver.

2. It is nearer the value in one place
to v/hat it is in another, being of eafier

carriage.

CONSIDERED. 175

3. It can be eafier kept; taking up
lefs room, and without lofs ; becaufe
it may be exchanged at the office, the
confumption of paper is not of fo
much value as the confumption of (li-
ver, the confumption of the paper is
a lofs to the office, the confumption
of filver is a lofs to the owner.

4. It can be divided without lofs :
becaufe it may be changed for leffer
notes at the office.

5. It is capable of a ftamp, and lefs
liable to be counterfeit.

The practice of more trading nati-
ons confirms, that paper is more qua-
lified for the ufe of money, than fil-
ver ; providing it hath a value, in Hol-
land filver is pledg'd, and paper is ufed
as money, that land pledg'd is a better
value than filver pledg'd, is evident

I76 MONEY AND TRADE

from what has been faid. in England,
before the bank was fet up, gold-
fmiths notes were received in pay-
ments preferable to gold or filver:
which mows that paper money had all
the qualities necelfary in money, fo
much more than gold or filver, as to
equal the danger of a gold-fmith's
breaking, of which there were many
examples. Mr. Lock, pag. 7th on in-
tereft of money, fays, that one gold-
fmith's credit (being ufually a note
under one of his fervants hands) went
for above eleven hundred thoufand
pounds at a time.

The notes of the bank in Scotland
went, tho' there was no money in the
bank, and tho' their acceptance was
voluntary, the fecurity for the paper
propos'd will be as good, the adminif-

CONSIDERED. 177

tration may be more fafe and fatisfac-
tory than that bank, or any other pri-
vate bank; becaufeitis more public,
and the commiffion has not any fhare
of the profits, befides it will not be
liable to the hazard banks are liable to,
from the fale of fhares.

And it feems ftrange that the admi-
niftration of fuch a commiffion fliould
be doubted, when the parliament has
the nomination of the managers ;
when the managers are to be accoun-
table to the parliament; when the truft
is to be fo fmall, for more notes cannot
be coin'dfolong as 25000 lib. is in the
office; a committee of parliament is to
be appointed to infpedt the manage-
ment, the books are to be open to the
infpeclion of any member of parlia-
ment, and the ftate of the commiffi-
on is to be publifhed in print.
Z

173 MONEY AND TRADE

Since the notes of the bank went
upon a voluntary acceptance, tho'
there was no money in bank ; 'tis rea-
fonable to think the paper money pro-
pos'd will at leaft have the fame cur-
rency : being current by law does not
make it lefs valuable, he who took
bank notes,could not be fure the bank
would be in a condition to give mo-
ney for them ; and the perfon he was
to pay money to, might refufe them :
fo he was more uncertain, than if they
had been current by law.

The filver money being to fall be-
twixt 8 and 9 per cent in 3 months,
it is not to be fuppos'd that filver will
be prefer'd to paper money ; fince
the notes of the bank, which is paper
upon the fame fund, went at the ordi-
nary intereft: and tho' the receiver
was not certain of the money at the

CONSIDERED. I79

time it was promifed, or that the per-
fon he was owing to would receive it.

It may be objected, that paper went
becaufe filver could be got for it when
demanded, or at a certain time.

That was very reafonable, but
would not be fo in this cafe : the fecu-
rity pledg'd for that paper money,was
filver. the fecurity pledg'd for this pa-
per money, is land, this money has no
relation to gold or filver, more than
to other goods, and it were more extra-
vagant to fay, I won't take a 100 lib.
of fuch paper money for the goods I
fell,becaufe I am not fure if 6 months
hence it will buy me fuch a quantity
of filver ; for filver may grow dearer:
as it would be to fay now, I won't take
a 1 00 lib. in filver for the goods I fell ;
becaufe I am not fure if 6 months
Z 2

l8o MONEY AND TRADE
hence, it will buy me fuch a quantity
of wine, for wine may grow dearer.

4 Crowns won't buy a guinea, tho'
they were coin'd for the fame value ;
nor won't buy the ioth part of goods
4 crowns bought 200 years ago, yet
filver is received as a value, and con-
tracted for, tho' its value leffens every
year, and tho' 'tis not perhaps worth
above a third of what 'tis given or con-
tracted for, abftraft from the ufe of
money, this paper propos'd will not
only keep its value ; the encreafe of
the quantity depending on the de-
mand, and the quantity decreafmg as
the demand decreafes : but likewife
the land pledg'd is as valuable as the
paper given out, abftratt from its ufe
as money, and encreafes in value.

The objection may bemadeagainfi:

CONSIDERED. l8l

filver money, and with good reafon ;
for it falls fatter in its value than other
goods, and may foon be reduced to its
value as a metal.

The paper money propos'd is equal
to its felf ; but to continue equal to
fuch a quantity of any other goods, is
to have a quality that no goods can
have : for that depends on the changes
in thefe other goods.it has a better and
more certain value than filver money,
and all the other qualities neceffary in
money in a much greater degree, with
other qualities that filver has not, and
is more capable of being made money
than any thing yet known, land is
what is mod: valuable, and what en-
creafes in value more than other
goods ; fo the paper money iiTued
from it, will in all appearance not on-

l82 MONEY AND TRADE

ly keep equal to other goods,but rife

above them.

Becaufe of the extraordinary fear-
city of filver in Scotland, and the in-
clination people have to it, from its
having been long ufed as money; it
may be neceffary to reftricl: its price to
5 fh. and 2 pence the ounce: but it
will foon fall from that value of paper,
ifitcomein greater quantity into Eu-
rope, than is exported orconfum'd.

Suppofe an ifland belonging to one
man, the number of tenents a 100,
each tenent 10 in family, in all a
1000 ; by thefe the ifland is labour'd,
part to the product of corns, the reft
for pafturage : befides the tenents and
their families, there are 300 poor or
idle, who live by charity, there is no
money, but rents are paid in kind, and

CONSIDERED. 183

if one tenent has more of one pro-
duct, and lefs of another than his fa-
mily has occafion for, he barters with
his neighbour.

The people of this ifland know no-
thing of manufacture; the ifland being
plentiful, fumifhes enough for their
confumption, and an overplus which
they exchange on the continent for
cloaths, and what other goods they
want:but as that overplus is only fuffi-
cient to make a return of fuch a quan-
tity of goods as they confume yearly,
fo they have no magazines of their
own or foreign goods to ferve them in
bad years, nor no magazines of arms,
ammunition, &c. for their defence.

'Tis propos'd to the proprietor, that
if a money were eftablifh'd to pay the
wages of labour, the 300 poor might

184 MONEY AND TRADE

be imployed in manufacturing fuch
goods as before were exported in pro-
duct ; and as the 1000 that labour the
ground were idle one half of their
time, they might be imployed fo as
their additional labour would be equal
to that of 500 more, which would lef-
fen their import by providing them
with a part of fuch goods as before
they brought from the continent, and
raife their export to 3 or 4 times the
value it had: the return of which would
furnifh them with greater quantities
of foreign goods than they wanted
for confumption, which might be laid
up in magazines.

The money propos'd is after this
manner, the proprietor to coin pieces
of paper figured number 1, number 2,
and fo on ; number 4 to be equal to

CONSIDERED. 185

a certain meafure of corn, the poor
and other labourers would be fatisfied
to take number 4 for the wages of a
day's labour, providing it be fo con-
triv'd that number 4 purchafe them
the meafure of corn; for as that corn
can be barter'd with other goods, fo
number 4 would purchafe an equal
value of any other goods.

To make number 4 equal to that
meafure of corn, the proprietor calls
his tenents together; tells them for the
future, he will have his rent payed in
paper,fo renews their leafes, and where
a 1 00 meafures of corn was payed,
they oblige themfelves to pay him
number 400. the other kinds the pro-
prietor was payed in are valued, accor-
ding to the value they had in barter
with corn ; and leafes made for paper.
Aa

lS6 MONEY AND TRADE

The proprietor coins paper to the
value of a year's rent, imploys fuch as
are willing to work, and gives them pa-
per-money as the price of their labour,
the tenent gives corn or any other
goods he has to the labourers for pa-
per-moneyed the proprietor receives
it for his rent, but as the confumption
of the labouring man may be fuppos'd
to be only equal to number 2 ; fo the
tenents cannot get the whole fum hTu-
ed by the proprietor, and confequently
not enough to pay their rent, if this
were not remeeded, the labouring
men being matters of the remaining
part of the paper, and having no occa-
lion for more goods from the tenents,
might raife the value of the paper, to
prevent this, the proprietor coins a
greater quantity, which brings a part

CONSIDERED. 187

of the poor and idle of the continent to
the ifland, and occafionsa greater con-
fumption, whereby the tenents are
able to pay their rent in paper as con-
tracted for. the addition to the people
is an advantage to the ifland j for it adds
to the power of the ifland, and their
labour is worth double what they
confume.

This money tho' it has no value
but what the proprietor gives it, by
receiving it in payments of his rent;
yet it will be efteem'd equal to the pro-
duct payed before.

If the proprietor would give it a
value in land, computing after this
manner : an acre of land pays number
1 00, at 20 years purchafe worth num-
ber 2000. and difpone the property
of land for paper at that value ; who
Aa 2

l88 MONEY AND TRADE

would not be fatisfied to receive or
contract for that money, fince it not
only bought the product, but the pro-
perty ofland at a reafonable price?

Money is not the value for which
goods are exchanged, but the value by
which they are exchanged : the ufe of
money is to buy goods, and filver while
money is of no other ufe.

Tho' filver were our product, yet it
is not fo proper to be made money
as land, land is what produces every
thing, filver is only the product, land
does not increafe or decreafe in quan-
tity, filver or any other product may.
fo land is more certain in its value
than filver, or any other goods.

Land is capable of improvement,
and the demand for it may be greater ;
fo it may be more valuable, filver can-

CONSIDERED. 189

not be fuppos'd to be apply 'd to any-
other ufes, than it is now apply 'd to ;
or that the demand will encreafe more
than the quantity.

Land cannot lofe any of its ufes, fo
will not be lefs valuable ; (liver may
lofe the ufe of money it is now apply'd
to, fo be reduc'd to its value as a metal.

It may likewife lofe a part of its
ufes as a metal, thefe ufes being fup-
ply'd by other goods : fo lofes a part of
its value as a metal, but nothing can
fupply the ufes of land.

Land may be convey 'd by paper,
and thereby has the other qualities
neceffary in money, in a greater degree
than filver.

Land has other qualities fitting it
for the ufe of money, that fdver has
not.

100 MONEY AND TRADE

Land apply'd to theufe of money,
does not lofe any of the other ufes it
is apply'd to : filver cannot ferve the
ufe of money, and any of its other ufes
as a metal.

Trade and money depend mutually
on one another ; when trade decays,
money leffens ; and when money lef-
fens, trade decays, power and wealth
confifts in numbers of people, and ma-
gazines of home and foreign goods ;
thefe depend on trade, and trade on
money, fo while trade and money
may be effected directly and confe-
quentially ; that which is hurtful to ei-
ther, mufl: be fo to both, power and
wealth will be precarious.

If a money is eftablifh'd that has no
intrinfick value, and its extrinfick va-
lue to be fuch, as it will not be expor-

CONSIDERED. ipi

ted ; nor will not be lefs than the de-
mand for it within the country .-wealth
and power will be attained, and be lefs
precarious, money not being liable to
beleflen'd directly, nor consequenti-
ally ; and trade not liable to decay con-
fequentially. fo the power and wealth
of that country will only be precari-
ous, from what may be directly hurt-
ful to trade.

The paper money propos'd being
always equal in quantity to the de-
mand, the people will be employed,
the country improv'd, manufacture
advanc'd, trade domeftick and foreign
will be carried on, and wealth and
power attained, and not being liable
to be exported, the people will not be
fet idle, <kc. and wealth and power
will be lefs precarious.

Ip2 MONEY AND TRADE

From whence it is evident, that
land is more qualified for the ufe of
money than filver ; and preferable for
that ufe tho' filver were the product of
Scotland : being more certain in its va-
lue,and having the qualities neceffary
in money, in a greater degree : with o-
ther qualities that filver has not; fo
more capable of being the general
meafure by which goods are valued,
the value by which goods are exchan-
ged, and in which contracts are taken.
If 2000 lib. of paper money, is e-
qual to the property of land worth
2000 lib. in filver; then that 2000 lib.
of paper money, is equal to 2000 lib.
of filver.

What buys land, will buy every
thing the land produces ; and what
buys the product of land, will buy

CONSIDERED. I93

all other goods whether home or fo-
reign.if wine is brought from France,
the merchant defigns to lay out his
money on goods, at intereft, or on
land : the commiffion does not receive
filver money, fo he cannot have a
bond from the commiffion, unlefs he
give the value in paper ; and many of
the landed men won't take filver for
their goods or lands, having occafion
for paper to pay the commiffion. fo
the merchant will choofe to fell his
wines for paper money, becaufeit will
purchafe him goods, bonds or lands
where filver money will,being equal-
ly valuable: and in cafes where filver
money will not.

And this is fuppofing filver were
equally qualified for the ufe of money,
as land is. but as filver is an uncertain
Bb

194 MONEY AND TRADE

value, and is given for much more
than its value as a metal; and has not
all the qualities neceffary in money,
nor in fo great a degree as paper mo-
ney : fo paper money will for thefe o-
ther reafons be prefer'd to filver.

Some object that a paper money
tho'uponagood fund, and current in
the country; yet will not be valued
abroad, equal to what it were in Scot-
land.

The goods of Scotland will al-
ways be valued abroad, equal togoods
of the fame kind and goodnefs ; and
that money tho' of paper, which buys
goods in Scotland, will buy goods or
money in other places, if a iooo lib.
in ferges, linen cloth, &e. be worth
abroad all charges payed 1300 lib. the
merchant who exports fuch goods,

CONSIDERED. 195

will give a bill for that money at the
par, having 1300 lib. for what coft
him a 1000.

When a nation eftablifhes a mo-
ney, if the money they fetup, have a
value equal to what it is made money
for, and all the other qualities necef-
fary in money; they ought to have no
regard what value it will have in o-
ther countries, on the contrair, as
every country endeavours by laws to
preferve their money, if that people
can contrive a money that will not be
valued abroad ; they will do what o-
ther countries have by laws endea-
vour'din vain.

No nation keeps to filver becaufe
it is ufed in other countries, it is be-
caufe they can find nothing fo fafe
and convenient, trade betwixt nations
Bb 2

1 96 MONEY AND TRADE

is carried on by exchange of goods,
and if one merchant fends out goods
of a lefs value, than he brings home ;
he has money furnifh'd him abroad
by another who brings home for a
lefs value than he fent out : if there is
no money due abroad, then the mer-
chant who defigned to import for a
greater value than he exported, is re-
ftricled ; and can only import equal
to his export, which is all the many
laws to regulate trade have been en-
deavouring.

It is objected that we are under a
neceflity of having goods from coun-
tries who will take none of ours.
France does not allow money to be
exported, nor any fliip to import
goods, unlefs French goods are expor-
ted from the fame port; to the value of

CONSIDERED. 197

the goods which were imported, by
our law we are forbid to export mo-
ney. but as I don't think the example
of nations agoodanfwer, I fhall en-
deavour to give a better, fuppofe our
money is not valued abroad, and we
have occafion for goods from Den-
mark, who takes none of ours, thefe
goods being necefTary here, will be
valued higher than other goods that
are not fo necefTary ; and the value of
Scots goods fold in other countries,
will be carried to Denmark, in fuch
goods as will fell there, or in foreign
money, and thefe necefTary goods be
brought home : becaufe the trader
makes a greater profit by them, than
by fuch goods as could have been im-
ported from that country, where the
goods exported were fold.

I98 MONEY AND TRADE

But as this addition to the money
will employ the people who are now
idle, and thefe nowemploy'd to more
advantage : fo the product will be en-
creas'd, and manufacture advanc'd. if
the confumption of the nation conti-
nues as now, the export will be grea-
ter, and a ballance due to us : and as the
exchange depends on the ballance, fo
paper money here, will be equal to a
greater quantity of filver money a-
broad.

Suppofe the yearly value of Scot-
land a million and a half, the yearly
value of England 40 millions ; the va-
lue of Scotland, is only about one 2 Sth
part of the value of England, yet the
quantity and quality of the lands, and
the numbers of people confider'd ;
Scotland will be at leaft as 1 to 6. and

CONSIDERED. . Ip^

if there was money to employ the
people, we wrould be as one to 6 ■ for
we have advantages peculiar to us,
that do more than equal the Planta-
tion an-d Eaft-India trades.

England is not improved fo far as it
might be, by a greater quantity of mo-
ney, we may have money equal to the
demand, by applying our land to that
ufe. fo our country may be improv'd
above the proportion of one to 6. but
if the propos'd addition to our money,
improved the country only fo as to
bear a proportion with England of
one to 13, our yearly value would be
3 millions -and our confumption not
being half what the fame number of
people confume in England ; if the
confumption continued as now, the
ballance due to Scotland would be

200 MONEY AND TRADE

greater, than the ballance due to Eng-
land.

This addition to our yearly value
may be thought by fome people, a
fuppofition that's extravagant, but I
defire thefe people will confidcr what
confequences the plenty of money
has had in other places, as the money
of England has increas'd, the yearly
value has increas'd ; and as the money
has decreas'd, the yearly value hasde-
creas'd.

I don't doubt but the paper-money
propos'd being given out equal to the
demand, would bring the yearly va-
lue of Scotland to 3 millions, tho' the
fifhingand other branches of foreign
trade ( which might be improv'd to
great advantage) were neglected, but
fuppofe the yearly value increas'd only

CONSIDERED. 201

half a million, of which a 4th (pent in
•a greater confumption of the product
and manufacture of the country, a
4th in the greater confumption of fo-
reign goods and expence abroad,a 4th
laid up in magazines of foreign goods,
a 4th would ftill be due of ballance
and brought home in filver.

If the confumption and expence
increas'd equal to, or beyond the im-
provement; as the paper-money could
not be exported, fo the people would
notbe fet idle,nor the manufacture de-
cay : that money being like an eflate
intail'd. we might continue to con-
fume equal to the yearly value, but
could not leffen the yearly value, nor
be poorer if we would.

If a greater value of goods was im-
ported than was exported, and credit
Cc

202, MONEY AND TRADE

given for the ballance ; foreigners to
pay themfelves, would fend a leffer
value of goods the year after, but fuch
reftriclions may be put on the con-
fumption of our own and foreign
goods, as may make a ballance due.

The revenue of the commiflion
will be a great help toward the advan-
cing our trade in its infancy : w hat en-
courages the export of goods, encou-
rages the manufacture of them ; and
that money given as a draw-back, will
not only encourage the export and
manufacture; but likwife regain the
reputation our goods have loft, and
give them a better reputation than
the goods of other nations.

The draw-back ought not to be
given to all goods,but to fuch as do not
yield a reafonable profit abroad, and

CONSIDERED. 203

upon condition they are found fuf-
ficient.

The feal of the office of draw-back
ought to be apply'd to thefe goods
that receive the draw-back; and thefe
intruded with the draw-back, fliould
give fecurity to pay the price of fuch
goods, with all charges, if found in-
fufficient.

When manufa&ureand trade pro-
fpers, the landed man's rent is well
payed, and increafes : when they de-
cay, his rent is ill pay 'd , and decreafes.
a draw-back is fo effectual a way to
encourage and promote manufa&ure
and trade ; that it were the landed
men's inter eft to tax themfelves, ra-
ther than a draw-back fliould not be
given, where it is neceffary.

A draw-back is more neceffary
Cc 2

204 MONEY AND TRADE
here than in other countries, for we
do not manufacture fo well as other
nations: we are not able to fell for
the fame profit,our (locks being much
fmaller; and the goods of other na-
tions will be preferr'd to ours,becaufe
our goods are fufpected.

Some object that this propofal is
new, and has not been practis'd in
any nation.

The example of another nation
ought not to determine us, to follow
the fame meafures, without examin-
ing whether that nation was the better
or the worfe by fuch meafures; and
whether our circumftances and theirs
don't differ fo, as to make that hurt-
ful or ineffectual to us, which was of
advantage to them, on the other hand,
it is no argument againft any thing

CONSIDERED. 205

proposed for the general good, to fay
it is new, and what has not been
pracYis'd.

When any thingpropos'd has been
already pra&is'd by other nations, 'tis
a prefumption in favours of fuch a
propofal ; and it's a prefumption a-
gainft it, if it has been refufed : but a
wife nation ought not to be determi-
ned by example, to follow or refufe
without examining.

This propofal has not been re-
fus'd. theefTential partis nowpractis'd
in France, for paper is current by
law: and tho' after a manner that in
all appearance ought to have hindred
its currency , yet I'm inform'd fo-
reign bills are bought with paper mo-
ney, the fame as with filver or gold.

The example of nations in relation

2o6 MONEY AND TRADE

to money would be a very uncertain
rule, for as has been faid page 70,
oppofite meafures have been us'd in
fome countries to what have been
ufed in others, and contrary meafures
have been ufed in the fame countries
to what was ufed immediately before,
not becaufe of any difference in their
circumftances, but from the opinion,
that fince the method ufed had not
the effect defign'd, a contrary would ;
and there are good reafons to think
that the nature of money is not yet
rightly underftood.

Any other objections that I have
yet heard againft this propofal, are
fuch as may be fully anfwered, and fo
far as I can fee into it, with all the
application I have been capable of,
I cannot find any objection but what

CONSIDERED. 10J

may be fully anfwer'd ; nor any dif-
ficulty in the execution, but what
may be removed : if there is any fal-
lacy in the pofitions I lay down, or
any wrong confequences drawn from
thefe pofitions, I have not been able
to difcover them.

CHAP. VIII.

The low condition this country is reduced to, notwitb-
flanding its natural advantages.

The natural advantages the Dutch
have for trade, are, their fituation at
the mouths of the rivers of Germany,
and being near the bulky trade.

Their natural difadvantages are,
fmallnefs of territory, barrennefs of
foil, producing little but what's forc'd;
want of mines; long winters; un-
wholfome air ; marifhy, fo oblig'd to
great expence for foundation to their

208 MONEY AND TRADE

buildings, in making and keeping up
the high-ways, and in draining the
country yearly ; a dangerous coaft ;
difficult entry to their rivers ; the fea
to defend againft on one fide, and
powerful neighbours on the other ;
and heavy taxes, the confequence of
thefe other difadvantages.

Yet they have fo improv'd their
few advantages ,that they are become
a rich and powerful people, what has
contributed to their riches and power,
was the early protection and favour
the government gave to trade; the
liberty which was given to people of
different religions; the freedom of
trade allowed to Grangers ; the ex-
ample of their rulers in oeconomy;
but chiefly the neglect of trade in o-
ther countries, particularly in Spain,

CONSIDERED. 20£

who forced the people and trade of
Flanders to Holland.

Scotland has by nature many ad-
vantages for trade; a large territory ;
of eafie defence ; plenty of people ; a
wholfome air ; mines ; a proper fitua-
tion for the eaftern and weftern trades ;
near the bulky trade; a fafe coaft;
rivers of eafie entry; the feas and ri-
vers ftockt with fifh.

But numbers of people, the great-
eft riches of other nations, are a bur-
den to us; the land is not improv'd,
the product is not manufacture ; the
fifhing and other advantages for fo-
reign trade are neglected : and the rea-
f on generally given is, that lazinefs and
want of honefty are natural to us.

If want of honefty and lazinefs
were natural, they would be fo to
Dd

2tO MONEY AND TRADE
mankind ; or if peculiar to a people,
this would be fo to the Dutch rather
than to us : the air of Holland is grof-
fer which inclines to lazinefs;and the
country not producing wherewith to
maintain the inhabitants, would force
them to rob or cheat their neighbours,
or one another, but it is more reafon-
able to think lazinefs and want of
honefty are vices, the confequences
of poverty ; and poverty the confe-
quence of a faulty adminiftration. if
the fame meafures had been taken in
Scotland for encouraging trade, as
was taken in Holland, we had been a
more powerful and richer nation than
Holland, if Spain, France and Britain,
or any one of them had apply'd to
trade, as early, and upon the fame
meafures Holland did; Holland

CONSIDERED. 211

would not have been inhabited, but by
their early application, and the wrong
meafures of other countries, they
have got fuch great magazines of
what's neceflary for their maintenance
and defence; of rich commodities to
fell to other nations, of materials for
fhipping, &c. and fuch a quantity of
filver, efteem'd above its value as a
metal by being ufed as money : that
in all appearance fo long as filver is
ufed as money, the great quantity
they have of it, with their great oeco-
nomy, enabling them to under-fell
other nations \ they will maintain the
rank they hold in trade, and confe-
quently in power ; notwithftanding
their natural difadvantages, the pre-
fent application, and natural advan-
tages of other nations,
Dd z

212 MONEY AND TRADE

This country is more capable of an
extended trade than any other coun-
try of Europe, yet it is redue'd to a
very low ftate. trade is ruin'd; the na-
tional ftock is wafted ; the people for-
fake the country ; the rents of land
are unpay'd; houfes in towns, and
farms in the country are thrown upon
the owners hands; the creditor can-
not have the intercft of his money
to live upon ; and the debitor's pcrfon
and eftate are expos'd to the law.

The landed man, by having en-
gaged his perfon and eftate for the
payment of a fpecies, which is not in
his power to perform ; and having no
alternative: by the law his perfon is
at the mercy of the creditor, and his
eftate to be fold for fo much of that
fpecies as it will yield, if 2 or 3 mo-

CONSIDERED. 213

ney'd men call in their money, with
a defign to force their debitors to part
with their eftetes, at what prices they
pleafe to impofe: they may bring the
price of land to 15 or 10 years pur-
chafe, for they would not take bonds
in payment, and few or none would
be in a condition to buy with mo-
ney.

If victual fhould prove fcarce, as
we have not goods or money for any
value to fend out for corns ; fo only
a part of the people could be main-
tained : the better part would have
bread, but the more neceflary part,
the labouring men, would be fore'd
to leave the country, or to ftarve in it.
nor would they fare better in Eng-
land; for as the fcarcity of money
has fet idle many of the people of

214 MONEY AND TRADE

England, fo there are more already
than there is employment for:and our
people, at leaft many of them, would
meet the fame fate they had endea-
voured to evite.

The landed men would want peo-
ple to labour the ground ; they would
perhaps get food and cloathing for
themfelves and families, but thefe
they were owing to, in all appearance,
would get nothing : for the cafe being
general, and the landed men the
ftronger party ; they would not fuffer
their liberty and eflates to be taken
from them, but tho' the law could be
put in execution, and the eftates of the
landed men were put to fale ; as there
would be few purchafers, the price of
land would fall very low. fuppofe the
land were fold or given among the

CONSIDERED, £l£

creditors for 15 years purchafe, or
lefs ; it would be fold for more than it
were worth, for they would not find
people to labour it : fo many would
be fufFerers, and none gainers.

If neither of thefe cafes happen ;
yet this country cannot well fubfift in
the condition 'tis in : if this oppor-
tunity is negle&ed, if wrong or inef-
fectual meafures are taken, in all
appearance we will be in confufion
before we have another opportunity.

To raife or allay the money, to
coin the plate, or regulate trade, are
ofFer'd as meafures to fupply the want
of money: and 'tis thought any one
of them will bring us out of our dif-
ficulties, when they come to be exa-
min'd, raifing or allaying the money
will be found no help but a hurt to

$l6 MONEY AND TRADE

the country, whatever our circum-
ftances are. the others may prove inef-
fectual.

'Tis thought our import and ex-
pence abroad this lafl year exceeded
our export by a veryconfiderable fum,
fo to make the ballance equal we mull:
not only retrench equal to the money
which was fent out laft year ; but like-
ways fo much more as the want of that
money, and of the addition the bank
made to our money may have leffen'd
the yearly value, fo tho' 'tis poffible
that coining the plate and regulating
trade may bring the ballance to our
fide, yet 'tis to be fear'd the confe-
quences will fhowthat it is not very
practicable ; for that and other rea-
already given, however they may af-
fift, but in regulating our import, re-

CONSIDERED. 1\J

gard ought to be had that the fale of
our goods abroad be no way hindred,
for if that is not taken care of, we fhall
lofe more for want of a market, than
we fhall fave by importing lefs. and
tho' all necelfary care be taken, yet
the afliftance may reafonably be ex-
pected from thefe meafures, will not
relieve us ; they may keep us lingring
in the (rate we are, expos'd to confu-
fion at home, and to infults from a-
broad.

Moft people think fcarcity of mo-
ney is only the confequenceof abal-
lance due ; but 'tis the caufe as well
as the confequence, and the effectual
way to bring the ballance to our fide,
is to add to the money.

Our poor have been computed
200000, our people were then more
Ee

2l8 MONEY AND TRADE

than now, but our poor may be as
many as then ;fuppofe only iooooo,
and by the addition to our money
50000 of them were imployed, and
only for one half of the year, their
labour to be payed 3 pence, and
worth 3 pence more to the imployer,
their confumption a penny more
than now: the yearly value of the na-
tion would be increas'd by fuch labour
189583 lib. 6 fh. and 8 pence.

If the country people about Perth
and Stirling, have to the value of
20000 1. of linen, ferges, and other
manufacture more than is bought up ;
tho' thefe goods exported will yield
20 or 3 o per cent, profit, yet the own-
ers can't export them, thegoods being
in fo many different hands, and not
having correfpon dents abroad to

CONSIDERED. 2l£

whom they could truft the fale of
them. A. B. and C. are fatisfied for
that profit to take the trouble and ha-
zard of exporting them, but money
being fcarce they cannot get any to
borrow, tho' their fecurity be good;
nor cannot well have credit for the
goods from fo many different people
they are Grangers to. if they could
have credit for them, yet thefe coun-
try people muft be idle till A. B. and
C. pay them out of their returns
from abroad, fo for want of money
to exchange by, goods fall in value,
and manufacture decays.

It cannot well be known what fum
will ferve the occafions of the nation,
for as manufacture and trade advance,
the demand for money will increafe ;
but the many poor we have always
Ee 2

220 MONEY AND TRADE

had, is a great prelum prion we have
never had money enough.

England has been computed to have
had 14 millions in gold and filver,
and at the fame time had paper-mo-
ney for a great fum; yet England
never had money enough to imploy
the people: 50 million would not
improve England fo far as it is capable
of improvement, if all the people wck
then imployed and to the beft advan-
tage, more money would bring more
people from other countries, the pro-
vince of Holland by a great quantity
of money, and numbers of people
the confequence of much money, is
able to bear a lhare in the wars of
Europe, equal to many times the fame
number of acres of better land in
England; yet Holland has not the

CONSIDERED. 221

advantages for trade that England
has. fo that country that can have mo-
ney equal to the demand,will betnore
powerful than any other country
with the fame advantages, whofe mo-
ney is lefs than the demand.

If money were given to a people
in greater quantity than there was a
demand for, money would fall in its
value ; but if only given equal to the
demand, it will not fall in value.

At prefent perhaps 3 or 400000
lib. is more than there is a demand
for ; but as trade and manufacture in-
creafe, the demand for money will be
greater.

What I have propos'd to fupply
the country with money, may be re-
duced to this, if an eftate of a 100 1.
rent is worth 2000 1. in filver-mo-

222 MONEY AND TRADE

ney, and this eftate can be convey'd
by paper, and this paper be capable
of being divided ; then that eftate
may be made current money for 2000
lib. and any perfon who receives fuch
paper money, receives a value equal
to the fame fum of filver money,as fil-
ver is valued now. if it is coin'd for 15
years purchafe, then that paper-mo-
ney will be more valuable than filver,
for 1500 lib. in that paper will pur-
chafe land worth 2000 lib. filver-mo-
ney. if it is coin'd for 25 years pur-
chafe,then that paper money will not
be fo valuable as filver, for 2000 lib.
in filver will buy as much land as 2500
lib. in paper.

Since it is very practicable to make
land money, it would be contrary to
reafon to limit the induftry of the peo-

CONSIDERED. 223

pie, by making it depend on a fpecies
that is not in our power, but in the
power of our enemies ; when we have
a fpecies of our own every way more
qualified.

And confidering the ftate of this
country from the great fcarcity of
money ; that the value of lands fall,
rents are unpayed, farms are thrown
upon the matter's hand,and the debi-
tor's perfon and eftate expos'd to the
law, being engag'd to pay a lpecies
of which there is fcarce any in the
nation.

2. The hazard the money'd man
is in from the uncertainty of the value
of money, and the danger of con-
fufion, in which cafe the money'd
man maylofeall.

3. The low ftate of trade, that

224 MONEY AND TRADE

many of the people who depended
on trade and liv'd well, are ftarving or
fore'd abroad.

4. That the other degrees of the
people fuffer in proportion.

5. That the nation in this con-
dition may run into confufion, and
is expos'd to its enemies.

Confidering the benefit the nation
will have by this addition to the mo-
ney ; that the land will be improv'd,
fo be more valuable, rents be well
payed, and that debitors by paying a
value equal to what is contracted for,
may free their perfons and eftates
from the danger they are now expo-
fed to.

2. That the money'd man will re-
ceive punctual payment, in a money
of a more certain value than filver or

CONSIDERED. 22$

any other goods, and be in no danger
of confufion.

3. That erade will flourifh, and
thefe who depend on it be encou-
raged.

4. That the condition of the other
degrees of the people will be better'd.

5. That the nation will be able to
maintain itelfin order, and refill its
enemies.

Thefe reafons confidered, the ques-
tion then will be, whether we will
improve the country as much as it is
capable, without being at any expence
for a meafure of trade, or continue as
we are in hopes of filver from other
nations.

It will be a great advantage to this
nation, that by the regifler we are ca-
pable of putting this propofal in exe-
cution, and enjoying the benefit of
Ff

226 MONEY ANE TRADE

it ; when other nation s, tho' they re-
folv'd upon it, would forfome years
be incapable of it. tho' for the general
good of Europe it were to be wifh'd
England were as capable ofitaswe
are.

I have not had time to put my
thoughts in that order they ought to
have been, and am forc'd to leave
out anfwers I defign'd to have given
to fome objections I have heard made
againfl this propofal; but if the par-
liament think good to enter upon the
confideration of it, I don't doubt
but it may be made appear to be of
great and certain advantage ; that it
cannot poffibly be any way hurtful
to the country in general, and that it
may be fo ordered, as not to be hurt-
ful to any perfon, but on the contrair.
finis.

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